House prices have risen for the first time in 18 months according to the latest house price survey from Hometrack, the online housing research and database company.

National average weighted price	£160,900
National average monthly price change	+0.10%
3 month price change	-0.06%
12 month price change	-1.59%

Despite the small rise in average values over December, the survey of agents shows that house prices remained unchanged in more than 84% of the country’s postcode districts. The small rise over the month was largely a function of average values rising in 9% of postcode districts, with price falls reported in just 6% of postcode districts.

Richard Donnell, director of research said: "A move to more realistic pricing over the past 12 months and improving buyer confidence has resulted in this small increase in average house prices."

"Despite improving levels of market activity over the second half of 2005, average house prices have fallen by 1.6% over the year. We expect them to rise, on average, by just 1% over 2006."

With sales volumes holding up in the run up to Christmas In contrast to previous years, agents reported a rather unseasonal increase in the level of sales over December. Reported sales levels were 3.7% up over the month, following a 4% increase over November.

This increase in sales activity has been supported by rapidly improving buyer confidence, which is also evident in the robust mortgage lending data. "After the very weak first half to the year there is something of an end of year rush with buyers keen to seal the deal before the new year", commented Donnell.