Haart estate agent believes that the housing market is beginning to stabilise with prices expected to increase in the first half of 2009.

Haart, who spoke to 100 branches across London, found that property prices decreased by -0.2% in July and that the average house price in the Capital fell to £248,155 in July from £248,642 in June. The estate agent found that house prices have already fallen by -14.5% this year and it forecasts prices to fall by a further -5% by the end of 2008.

It also found that the level of enquiries by first-time buyers was the highest for 11 months as it increased for the third consecutive month by +20.5%. Haart believes that as prices have continued to fall across the Capital affordability has begun to increase, although strict lending criteria is still a major obstacle for first-time buyers.

Russell Jarvis, managing director of Haart, said: “Conflicting house price figures are being published all the time, but estate agency data shows what is actually happening on the ground in real-time and these are the numbers we should be paying attention to. There are clear indications that the market is over the worst now, as prices have dropped by over -14% so far this year. At most, we are expecting a further -5% fall in 2008.”