The number of people selling their property across the UK, has risen dramatically, according to the latest data from Haart, the independent estate agent. Applicant levels at Haart's branches are now at their highest level since July 2004. While prospects for first-time buyers are also improving.

"Successive price falls during the second half of last year, mean that there are now some very attractively priced properties out there. In effect, the housing market is having a January sale, and buyers should strike now to get the best bargains," Russell Jervis, managing director of Haart estate agents said.

Commenting on first-time buyers, Jarvis said: "First-time buyer levels fell to 18% during 2004 but this year levels are set to rise to 25% of the market. This will free up the bottom end of the housing transaction ladder and provide liquidity in the market place. All good news for buyers and sellers in 2005."

The property market will be back on track by Easter, according to the National Association of Estate Agents (NAEA). Although property prices fell by 1.2% last month, it still finished the year 6.4% higher than it was at the end of 2003. Many agents have reported that interest in property is increasing, and this may prompt first time buyers to return to the market. "Over the second half of last year, as average prices stabilised, property became more affordable for many and the percentage of first-time buyers rose," said the NAEA.

The president of the NAEA, Richard Hair said: "The current downturn will prove to be short-lived and the figures we are reporting this month show that annually, prices are up by over 6% and activity is good for the time of year.

"Together with the upbeat reports we are receiving from the agents on the front line, and the wider economic conditions such as low interest rates, we fully expect UK house prices to be showing positive monthly growth again by the spring."

Property investors made an average return of 31% in 2004, according to a buy-to-let index released by Paragon Mortgages.

The report reveals that landlords enjoyed a return of £38,560 on an average property bought one year ago for £123,372. £29,462 was made up of capital appreciation and £9,098 rental income. This compares with total annual returns of 20% or £22,137 in December 2003.

John Heron, managing director of Paragon Mortgages, comments: "Landlords had a very good year in 2004 with their overall returns outstripping most other forms of investment. The average total return is over 31%, while in some regions it is significantly higher: 57% in Wales, 51% in the North and 44% in Yorkshire and the East Midlands."

Asking house prices in England and Wales have fallen for the third consecutive month. According to figures released by rightmove.co.uk, asking house prices fell by 0.1% which took the average asking price to £189,509, which is 3.4% below the peak figure of £196,198 recorded in July 2004. Following the property boom during the first half of last year, property prices have now fallen five times during the last six months.

These figures confirm a separate report, recently published by the Halifax, which reveals that property prices outside the south east of England have been slowing significantly. Martin Ellis, chief economist at the Halifax, said that he expected this trend to continue.

Sharp Fall in Wales.

Following a Welsh property boom during the first half of 2004, recent figures released by the Halifax reveal that the average house price in Wales fell by 6.2% to £133,775, an average price fall of £3000 per month between October and December, worst than anywhere else in Britain.

Despite most of Britain reporting a downward trend in the property market, the report revealed that the north of England and Northern Ireland have reversed the trend, by recording increases of 3% and 6.4% respectively.

The north-south house price divide is now at its lowest for seven years, according to the Halifax. Over the past year, prices in London have risen by 3.2% and 7.2% in the south-east, compared with a 27.3% rise in Manchester.