House prices remained flat during July but the market is beginning to show signs of recovery, figures showed today.

It is the second month in a row prices in England and Wales have remained unchanged, following falls of 0.1 per cent in both April and May, according to property web site hometrack.

But the group said price falls in southern parts of England appeared to be moderating while price rises in other regions were slowing.

At the same time, the number of new properties coming on to the market increased by 2.8 per cent and the number of new buyers was up by one per cent.

Sales also increased by five per cent during the month, building on June's rise of four per cent.

Hometrack housing economist John Wriglesworth said: "In terms of price changes there has been nothing happening since December and the housing market remains as dull as ditchwater.

"However, activity levels are picking up slowly and better sales prices are being achieved.

"Demand growth is still not matching supply but the market is certainly looking more positive."

Monday July 28, 2003