Speaking on the announcement of the figures, the BSA's director general Adrian Coles said that recent increases in property prices was due to a number of factors but buyers had a "realistic" view of the market.
"For most, the primary motivation for buying a property is derived from the satisfaction of owning a home, rather than the financial motivations of capital appreciation," he said.
The positive findings for the property market were announced as mortgage broker Northern Rock's shares rose by 11 per cent after its recent troubles.
Alistair Darling, the chancellor, yesterday confirmed that the Bank of England would guarantee any existing deposits that customers have with the bank.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.