New buyer enquiries increased at their fastest rate for more than two years last month, according to a new report.

New buyer enquiries increased at their fastest rate for more than two years last month, according to a new report.

Despite this rise, house prices continued to fall albeit at their slowest rate in 15 months, figures released by the Royal Institution of Chartered Surveyors (Rics) showed.

"This month has seen further evidence of a pick-up in the market with the recovery in would-be buyer interest," said Jeremy Leaf, Rics spokesman.

"Contributing factors include diminishing uncertainties over the future of interest rates and rising employment which is lifting the demand for homes," he continued.

Sales activity rose by eight per cent between February and October, but remained five per cent down on the overall figure from last year, the research found.

The surveyors have a more positive outlook for the housing market, predicting modest price rises in seven UK regions in the next quarter.

House prices rose in Scotland and London but fell in the Midlands and the north of England.