Housing market shows resilience

House prices have moved upwards for the first time in almost a year and a half in June

The housing market has shown further signs of resilience after prices remained the same for the third month in a row, according to a new survey.

Research by Hometrack said there was no change in average residential property prices from May to July, although the figures did highlight a north-south split.

Agents and surveyors reported increasing house prices across 10% of postcodes in July - the vast majority in southern England where a dearth of housing is putting upward pressure on prices.

In the north, however, agents report "difficult" market conditions with more stock but weak demand.

It takes less time to sell in the south, where the average is now below nine weeks and as low as 5.8 weeks in London - the lowest since March 2008.

In the Midlands and north the figure is still over 10 weeks, while in Wales the total is as high as 11.8 weeks.

Hometrack compiled the figures from more than 6,000 responses from surveyors and agents across the country.

Hometrack director of research Richard Donnell said: "A lack of mortgage finance, low buyer confidence and growing fears of unemployment are currently being offset by increased demand, a pick up in sales and a growing scarcity of housing for sale."

The poll shows that while there has been no growth in headline prices over the last three months, the proportion of asking prices being achieved improved to 91.5%, compared to 88.3% in January.

Mr Donnell added: "The housing market remains in a fragile state. Any increase in the supply of homes for sale could easily undermine the firming in pricing we have seen over the last few months."