AN ESTATE agent in Cirencester believes the only way is up for house prices in the Cotswolds this year.

Sam Butler, senior partner of Butler Sherborn, said UK house prices recorded their first monthly fall since June with a 1.5 per cent drop in February according to the latest statistics from the Halifax. But he said prices in the Cotswolds had stabilised and predicted a rise in 2010. "No one can call the bottom of the market but I believe in the Cotswolds we have reached it," he said.

"While a 'double dip' was predicted nationally, prices here have stabilised and buyers' and sellers' expectations are on a par."

He said the region was considered one of the best places in the country to invest.

"The Cotswolds is one of the most quintessentially English, unspoilt regions in the UK," he said."There is much to offer in terms of desirable property, from chocolate box cottages and handsome family houses through to large country estates.

"Period properties in or near the numerous pretty villages and historic market towns are much sought after and the excellent choice of private and state schools makes this an ideal location for families."