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"We are of course meeting at a time when financial market sentiment has improved and there are signs that this is feeding through to an improved outlook in some of our economies," Osborne said.
"Market psychology is fragile at the moment," Ms. Cazaban said, "but sentiment has improved.
"Anything that measures sentiment has improved," an economist at Deutsche Bank, Joseph LaVorgna, said.
Sentiment has improved in recent sessions as many companies matched or surpassed earnings expectations for the first quarter.
"This is the greatest coverage of house price growth for almost a decade showing the extent to which market sentiment has improved in the last 12 months".
In fact sentiment has improved so much that the sector has the most positive results in the latest Lloyds TSB Private Banking Investor Confidence Index.
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The report said sentiment had improved as the uncertainty over Europe had diminished.
It said that although market sentiment had improved, lenders remained "vulnerable," citing high leverage and financing pressures.
Market confidence was also buoyed by a closely watched quarterly business survey — the Tankan, compiled by the Japanese central bank — which showed that corporate sentiment had improved significantly in the three months to September.
Savills UK head of residential research, Lucian Cook, said house prices had been underpinned by record low interest rates, rising loan-to-income lending and pent up demand from buyers re-entering the market as the economy and consumer sentiment have improved.
Business and consumer confidence nudged higher on average across the EU despite the fall in Portugal, though analysts were hard-pressed to explain why sentiment had improved this month against a backdrop of huge anxiety while negotiations continued in Athens over the fate of Greece and talks over closer fiscal unity were undermined by Britain's use of its opt-out.
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