According to Cantor Spreadfair (a spread betting exchange), there has been a shift in house price sentiment over the last few weeks.

Despite a meltdown in the majority of world markets, a higher level of activity on the spread betting exchange has seen prices for the housing market rise. The market witnessed an all-time low in December 2007, but seemed to be bouncing back with clients believing the housing crash was unlikely to occur.

In early January 2008, Halifax said the cost for an average UK house was £197,163 and Spreadfair clients predicted this to decrease to £181,000 by the end of 2008. In the last month, clients have been less bearish and see the average house price in the UK to be valued at £187,000 in December 2008 which is £6,000 higher than their estimate two months ago.

Nick Sproule, head of key accounts at Spreadfair, said: “We have seen significant interest from clients who would like to bet on where house prices are going to be in a year, two and even three years time. Interestingly, we are seeing a number of clients who made money during the property boom over the last few years, re-entering the market. Their view is it is oversold. Others are more bearish and are waiting for the credit crunch to feed its way into prices.”