The cut in UK interest rates to 3 per cent has led to an increased number of inquiries and viewings of properties for sale in the North, according to a new industry report to be published today.

Although there is no sign of a recovery in the Northern Ireland housing market, the Royal Institute of Chartered Surveyors (RICS) says there are signs of growing interest in properties for sale, which is a positive development.

In its latest market report on the North's housing market the RICS says fewer of its members reported price falls last month compared to the total number reported in October.

Tom McClelland, the institute's spokesman in the North said there was some evidence that there has been more activity in the first-time buyers' market.

"This is traditionally a quiet time of the year for the housing market. However, chartered surveyors are reporting increased inquiries and viewings.

"This follows significant asking price reductions in some sectors and recent significant cuts in the Bank of England base rate," Mr McClelland said.

He says the industry hopes that the increased interest in property will translate into more sales but he believes that some first-time buyers are currently having major problems obtaining mortgages.

The RICS view is that a "price correction" has taken place in the new build starter homes market which could tempt some buyers.

But Mr McClelland said rising redundancy figures in the North and fears about the recession also means a lot of potential buyers are holding off making a decision to see what the new year may bring.

"Managing seller expectations regarding asking prices remains a key issue in the resale market," Mr McClelland added.