Asking prices in January saw an increase of 0.3% as the number of houses on the market fell to a two-year low, research indicated today. The rise in prices for properties in England and Wales during the five weeks to January 8 came after prices had fallen during five of the previous six months, dropping by 6.2% during December and November alone.

However, with a shortage of homes being put up for sale, combined with a surge in demand from potential buyers, should help to underpin prices in popular areas in the run-up to the spring moving season.