House prices in the south of England are falling but the rate of decrease slowed in July.

Meanwhile prices in the north of England and Wales, which buoyed UK house price inflation in 2003, have slowed.

Overall, the survey from property website Hometrack concluded that the housing market was showing tentative signs of recovery with an increase in sales.

Dull market

Fastest fallers Sussex Avon Bedfordshire Surrey Source: Hometrack

The number of sales rose by 5% in July as interest rate cuts encouraged more house buyers to take the plunge.

What is more, sellers are getting nearly 95% of their asking price, marginally up on Junes figure and the first increase for 13 months.

Unsurprisingly, considering that many recent house market surveys have shown price falls, homes are selling more slowly than last year.

Homes are now taking an average of five weeks and 11 viewings to sell.

Fastest risers Mid and North Wales South Wales South Yorkshire South Lincolnshire Source: Hometrack

John Wriglesworth, Hometrack's housing economist, said: "In terms of price changes, there has been nothing happening since December and the housing market remains as dull as ditchwater."

He added that Hometrack had lowered its forecast for house price inflation for 2003 to just 3% from 4%.

Region-by-region

Overall 24 counties reported no change in prices during July.

But 16 reported prices on the increase, Mid and North Wales were the areas enjoying the highest price rises.

Other counties enjoying robust price growth were South Lincolnshire, South Wales and South Yorkshire.

At the other end of the scale, 17 counties reported a price fall with west Sussex, East Sussex, Surrey, Bedfordshire and Avon the fastest fallers.