The UK housing market appears "steady and stable," according to a Newcastle-based property firm.

The UK housing market appears "steady and stable," according to Newcastle-based property firm.

Barratt Developments, Britain's second largest builder of residential complexes says that buyer confidence is returning following a lift in sales and profits during 2005.

Chief executive David Pretty predicted "modest" house price rises next year of between one per cent and three per cent, which would give buyers a "better opportunity" to make their first purchase

"With the key spring season still ahead of us, it is clearly too early to be sure of market trends, but we are currently on target to increase volumes," he said.

Last week, the chief economist at consultancy Global Insight, Howard Archer, responded to Office of the Deputy Prime Minister figures showing that house price inflation rose 2.5 per cent from a nine-year low up to November 2005 by stating that the UK property market was "beginning to firm".