Chaotic weather brought housing market activity grinding to a halt in January, although prices still increased during the month, the RICS housing market survey found.

Some 20% more estate agents reported a fall in new buyer enquiries rather than a rise at the start of 2010, the first drop in 14 months and down from +18% previously.

New instructions fell for the first time in seven months, with a net 5% of surveyors witnessing a fall, while newly agreed sales were down for the first month in ten.

But 32% more chartered surveyors reported a rise than a fall in house prices, up from 30% in December, confounding many experts who'd predicted a decline.

'Activity and interest is likely to pick up in the coming months as the market experiences a spring bounce,' said RICS.

Spokesperson Ian Perry said house prices are likely to rise in the short term, but could run out of steam in the latter part of the year if more supply continues to come onto the market.

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