The property market continues to prosper as confidence returns to buyers following the attacks of September 11, a survey published on Thursday revealed.

The report, by the Royal Institute of Chartered Surveyors, found that inquiries to their members increased by 12 per cent during the past quarter. Overall, 13 per cent more surveyors reported price increases than those reporting a drop in price.

The residential housing survey also revealed a stabilisation of the housing market in London and the South East; Only one per cent more estate agents reported price falls compared to those reporting price hikes, compared to 33 per cent reported in November. In the capital, the difference was six per cent.

The largest number of chartered surveyors reporting a rise in prices compared to a price fall came from the Yorkshire and Humberside region, at 51 per cent. Close second was the North West at 42 per cent, and the North East at 36 per cent.

The future of the housing market also appears positive, according to RICS members, as 45 per cent expected prices to continue to climb over the next three months.

National housing spokesman for the organisation, Ian Perry, said that the "period of wait and see" had obviously ended for buyers, but that realistic pricing of properties would be advisable.

"There has obviously been a period of wait and see for potential buyers. People are obviously confident enough in the economic climate to take the decision to start the lengthy process of buying a new home, whether first time buyers or people seeking to move up the housing chain. The price increases of last year have not proved to be a big deterrent," he said.

"But the slowdown in the market in the past few months has suggested that buyers are nevertheless being careful, and realistic pricing does pay."