Increasing buyer activity has given over 130,000 sellers the confidence to edge up average asking prices by 0.8%, (£1,507).

This takes asking prices of newly marketed properties to around the level seen 7 months ago, with prices remaining more or less static over that time period, said Rightmove today in their November house price index.

Righmove said the market had now reached a level of sustainable pricing that is attracting increased buyer demand without resorting to dramatic price falls.

Increased demand has also reinforced the downward trend in unsold property stocks per estate agency branch. Property stocks have fallen from their peak of 73 per branch in May to 69.

Miles Shipside, commercial director of Rightmove commented, "The property market’s key foundation has returned: confidence is back leaving pessimists out in the cold! The combination of sustainable prices and a fall in interest rates has raised buyers’ and sellers’ confidence to strike a deal".

Whilst the overall picture looks much healthier than most could have wished for at the turn of the year, there are still some marked variations in activity.

Miles Shipside said, "There are still some properties where price expectations are too high to benefit fully from the improving buyer sentiment. Over-valuing will still back-fire".

Rightmove’s house price index is compiled from the asking prices of properties coming onto the market via the firm’s 8,061 estate agency branches. The Index differs from other house price indicators, in that it reflects current and future trends in the market rather than being based on historical data as with the lenders’ and Land Registry’s figures.