Buyer interest in the UK property market rose for the first time in more than two years last month, a report claims.

However, the Royal Institution of Chartered Surveyors' (Rics) UK housing market survey revealed that the number of sales is still falling.

The average number of transactions over the last three months has now dropped to 10.6 per cent - the lowest figure since the survey began in 1978.

Despite 76.5 per cent of chartered surveyors reporting a fall rather than a rise in house prices - down from 81 per cent in September - tight lending criteria continues to stifle market activity.

This means that, while interest in the market turned positive for the first time since 2006, new buyers have struggled to finance any potential purchases.

Jeremy Leaf, a spokesperson for Rics, said that only those who were confident about their future financial prospects were likely to consider buying under in today's climate.

"Vendors still have to accept the inevitable fact that house prices are falling and re-price their property to suit current market conditions,"he suggested.

The Bank of England's monetary policy committee cut the base rate by one per cent last week in a bid to bolster the UK economy.ADNFCR-2002-ID-18921939-ADNFCR

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