LONDON, Jan 16 Reuters Asking prices for British homes rose for the first time in two months as the housing market showed signs of calming after the turmoil triggered by former prime minister Liz Truss39;s minibudget, property website Rightmove said on Monday.

Asking prices for residential properties increased by 0.9, or 3,301 pounds 4,032.50 in the Dec. 4Jan. 7 period from a month earlier, after a 2.1 fall over the previous month, Rightmove said.

It was the biggest gain at this time of the year since 2020. However, average asking prices were still 2 below their October 2022 peak.

Britain39;s property sector slowed in recent months as borrowing costs jumped and the risk of recession grew.

Economists polled by Reuters in November forecast that house prices would dip 5 in 2023, while analysts at Nomura said last week they expected prices to fall by 15 by mid2024.

The Bank of England hiked interest rates at its last nine meetings from 0.1 to 3.5 in an attempt to bring inflation, which was running at 10.7 in November, back to its 2 target.

Other measures of the housing market, including data on agreed house price sales from mortgage lenders Nationwide and Halifax, have shown prices falling as the rising cost of living squeezes homebuyers.

However, average two and fiveyear fixed mortgage rates have eased after surpassing 6 in October in the aftermath of Truss39;s failed tax cuts plan.

Two and fiveyear fixed rates have fallen for a second month to 5.8 and 5.6…