Interest in the housing market rose in January, the third month in a row, new figures show.

According to the UK housing market survey, published by the Royal Institution of Chartered Surveyors (Rics), buyer interest rose yet again but the average number of transactions per surveyor showed little fluctuation.

Data released today show the number of transactions per agency was down 0.1, from ten per agency in December, to 9.9 in January, representing the lowest figure since the survey began in 1978.

The balance of surveyors reporting house price falls increased slightly in December with 76.3 per cent more chartered surveyors indicating a fall than rise in house prices, compared to 73.9 per cent the previous month.

Rics spokesperson, Jeremy Leaf, said: “The latest survey provides further evidence of the eagerness of buyers to try and pick up bargains.

“This interest has yet to translate into sales but transactions may pick up in the coming months if the government follows through on its recent announcement and introduces guarantees for the issuance of residential mortgage backed securities.

“The latest cut in interest rates may improve confidence for those on the margins, encouraging buyers looking for more attractive finance deals.”

Interest in the market continued to pick up with 16 per cent more chartered surveyors reporting a rise than a fall in new buyer enquiries. However, completed property sales were down 58 per cent in comparison to January last year.

The survey showed buyer interest was strongest in Wales, while the balance in London continues to increase marginally.

Expectations that sales will increase have turned positive once again with ten per cent more chartered surveyors expecting sales to pick up in the coming months. Optimism is most visible in London and across the south of England with the balance of surveyors expecting sales to increase in London, rising from 18 per cent to 38 per cent.

James Perris, of London surveyors De Villiers, said: “New transactions have been scarce due to the ongoing banking crisis and the lack of lending products.

“There is interest in the market, mainly from investment buyers, but they tend to offer well below the asking price and with the economic downturn not yet fully affecting people, possibly due to savings or redundancy payoffs, vendors are not under pressure to sell at the low prices offered.”