A new report from Assetz suggests that the UK housing market remains robust despite its recent troubles.

The firm has published its latest House Price Watch, revealing that annual growth in January was 5.5 per cent.

Month-on-month inflation was down slightly but Assetz is confident that this is simply the market levelling out and stabilising after years of strong growth.

"This indicates the buoyancy of the UK residential market and is evidence that the downturn seen in recent months is simply part of a stabilisation process and not a market crash as has been touted by some," said Stuart Law, chief executive of Assetz.

"At Assetz we have stood by our prediction of a five per cent level of price growth for the year 2008, and we expect to soon see a return to upward movement in the market before the spring.

"Prices are already starting to increase in some indices and the latest indicators point to a sustainable level of growth for the foreseeable future," he added.

A recent report from the National Association of Estate Agents revealed that housing stock, registered buyers and sales per agent all increased in January.