The average property price in the UK fell again by a further 1.2% last month, but estate agents are still confident about 2005.

A report by the National Association of Estate Agents (NAEA) says estate agents across the country believe that activity is starting to increase and are on the whole they expecting the market to pick up once again.

Agents report that sensibly priced properties are selling well and this is reflected with the news that buyers are achieving an average discount of around 5% from asking prices, further demonstrating the shift in the balance of the market towards a buyer’s market.

Richard Hair, president of the NAEA, said: “Although there are anecdotal reports that some estate agencies are struggling, we have not seen evidence of any NAEA members closing shop.”