The number of houses sold in the UK increased for the second month in a row in October, according to figures from the National Association of Estate Agents (NAEA).

The study showed that agencies sold an average of seven properties a month in October, compared to six the month before.

But the NAEA attributed the increase in volume to sellers being more realistic about the price they would accept than any upturn in the market.

"Sellers are beginning to face up to the reality that their houses are not worth as much now as they were 12 months ago," said Chris Brown, president of the NAEA.

"They are ripping up last year's price tags and beginning to come to terms with the new economic reality."

Prices have fallen by around 15% in the past 12 months as banks restrict lending and prospective buyers wait for the market to bottom out.