Prices fell 0.1% during the month, with the average home costing �170,935, the website said in its latest survey.

But Rightmove said the decline was the smallest recorded for December in the last three years.

And the market had recovered in the first week of January, with average prices rising by �2,000 or 1.2%.

"The usual seasonal downturn in prices seems to have been very short-lived this year, and the declines of December have virtually been wiped out by the strong surge over the past week or so," Rightmove commercial director Miles Shipside said.

VOTE RESULTS What will happen to UK house prices in 2004? Keep on soaring 6% Small gains - up to 10% 36% Tread water 15% Falls in some areas 24% Market crash 19% 45760 Votes Cast Results are indicative and may not reflect public opinion Vote now closed

Wales and North

He added that the group still expected house prices to increase by more than 10% during 2004.

Most areas of England and Wales experienced price growth during the five weeks to 10 January, with Wales and the North of England leading the way.

However, prices fell in the West Midlands and East Anglia, and were virtually stagnant in London and the South East.

Last week, a monthly survey from the Office of the Deputy Prime Minister suggested that prices had fallen 1.1% last November.