However, its research showed that prices on an annual basis fell 2.1% in June, with only London experiencing a rise in the average property price over the last 12 months, with an increase of 1.3%.
The South West saw the largest monthly rise in June, up 2.2%, while the North East experienced the largest monthly and annual house price falls, down 2.3% and 8.8% respectively.
The Land Registry’s most recent available figures for completed house sales showed that they dropped 10% across England and Wales in May to 46,870 compared to 52,170 in May 2010.
The number of properties sold for more than £1m also dropped, down 44% to 262 in May 2011 compared to 464 for the same period of 2010.
Peter Bolton King, chief executive of the National Association of Estate Agent, said: “The NAEA’s latest figures show that buyers are coming back to the market. The average number of house-hunters registered per branch increased significantly in July, from 263 in June to 299. This is an unprecedented increase for what is traditionally a very quiet time.
“However, supply continues to be an issue and NAEA members are reporting a drop in the number of properties available. The truth is that, for most people, particularly first-time buyers, while buying a property is becoming more affordable, there just aren’t enough available properties on the market.”
David Brown, commercial director of LSL Property Services, said: “A rise of 1.3% means prices rose £30 per day last month. This would normally indicate a strong market, but it would be jumping the gun to suggest we’ve turned the corner in the UK.
“Mortgage lending is still subdued and prices have fallen 2.1% in the last 12 months.”
However, he said the MPC’s decision to continue to hold base rate at 0.5% and rising transactions in areas with the largest house price falls give reason to be optimistic, but added: “While there are tangible reasons to be optimistic, the market won’t return to consistent growth until mortgage lenders feel confident enough to start increasing the amount of money they’re pumping into the market.”
Nick Leeming, business development director of zoopla.co.uk, said: “Until people feel more confident about their personal finances and are able to put aside money to build even the smallest of deposits, the market will continue to stutter.”
