The British housing market started 2004 on a strong note with average prices rising by more than £2,000 sterling in a week, according to new figures.
Property website Rightmove said the average cost of a home in England and Wales surged by 1.2 per cent during the first week of January - the equivalent of just over £2,000.
There was also no evidence that the recent rise in interest rates had dampened the market, with inquiries from house hunters soaring during the first 10 days of the year.
The number of properties being sold continued to outstrip the number being put up for sale for the seventh month in a row, however the imbalance is continuing to ease.
But despite the strong start to the year, prices actually fell by 0.1 per cent for the five weeks to January 10 as a result of the customary seasonal slow down, although Rightmove said this was the lowest fall for the period in the three years it had been producing the index.
Annual house price inflation picked up slightly during the month to 9.9 per cent, the highest level for five months, and the average home now costs £170,935.
Miles Shipside, commercial director of Rightmove, said the current indications suggested there would not be a significant deterioration in the market during 2004, and prices could even increase by double figures.