The UK property market is looking up, according to new research.

The UK property market is looking up, according to new research.

During 2005, the market was sluggish but this slow market activity is coming to an end, research by website Propertyfinder suggests.

Propertyfinder also predicts that prices will start to rise again going into 2006.

"The dark days of late 2004 and early 2005 for the housing market are well and truly behind us," said Jim Buckle, managing director of Propertyfinder.

"Propertyfinder's research tracking buyer and seller confidence is a good predictor of housing transaction volumes and shows that transactions are set to increase into the new year by around 30 per cent compared to last year."

Mr Buckle said that interest rates are unlikely to change much in the coming year so the market cannot expect much "stimulation from the Bank of England".

He predicts that interest rates will be at the 4.5 level at the end of 2006.

"The City is giving a necessary boost to the market in London and the south-east where the housing market is already improving."