House prices increased for the first time in 18 months in December, according to a survey published yesterday.

House prices increased for the first time in 18 months in December, according to a survey published yesterday.

In its house price index, Hometrack, the property analyst, said that values increased by 0.1 per cent this month.

Richard Donnell, director of research at Hometrack, said that more realistic pricing and rising confidence among buyers prompted the rise.

"However, it is clear that buyers remain highly price sensitive," he added.

The firm states that this does not mean that the market is set for a rapid increase in prices.

Hometrack said that the 1.6 per cent fall recorded over the whole of this year will be followed by a rise of one per cent in 2006.

Mr Donnell added that affordability constraints "remain the biggest barrier to house price growth".