According to its latest research, the number of fixed-rate applications reached their highest level since July 2009, making up 88% of all mortgage applications in February, a 4% increase on the previous month.
Research by the group also revealed that property viewings increased by 40% in February across its network of estate agencies and lettings offices.
The number of sales agreed also rose by 47%, however overall sales volumes were 4% lower than the same period last year.
Despite a marginal increase in the number of properties available to rent in February, the group said that the lack of supply remained an area of concern.
It reported that tenant demand in the private rental sector jumped by 11% with over 19,000 new tenants registering for rental accommodation in February.
Grenville Turner, chief executive of Countrywide said: “We are beginning to see some early signs of improvement in the property market, whether this can be sustained against a backcloth of challenging economic conditions is difficult to determine.”
Turner said that the reintroduction of competitive mortgage products is the key to turn the increase in buyer activity into house sales.
He added: “Gathering a deposit remains a big hurdle for many would-be buyers. With four of the most popular mortgages applied for in February requiring a 10% deposit, this shows that the level of demand for these types of mortgages and highlights the issue of affordability.
“Ongoing economic pressures and the upward trajectory of inflation will increase pressure on the Bank of England to raise interest rates at some stage, which is why we’re seeing an ever-increasing number of people applying for fixed-rate products to give themselves the certainty of mortgage payments for between 2 and 5 years,” he explained.
