There have been an increasing number of signs of recovery in the housing market since the spring; so much so, that some, are wondering whether the market may have bottomed last winter.

What is noticeable is that there are more people ready willing and able to buy than there are willing sellers.

Sellers are able to gauge better what their home will sell for and are able to make commercial decisions whether it is right for them to sell or hold off. The shortage of stock has been a major factor in stabilizing prices in recent months.

Rightmove spokesman Mr Shipside says:"Key indicators increasingly suggest that prices have bottomed out.

With no real signs of increased mortgage funding or a relaxation of high deposit requirements, the "Steady State" is the most likely scenario for the remainder of 2009."

Winkworth anticipates some continued volatility in the market because the recession has been deep. We do not expect prices to drop at the same levels has last year but further fluctuations are anticipated, not all market sectors will recover at the same rate.

The Council of Mortgage Lenders has reported a further 11,000 repossessions in the past three months. Furthermore August has seen reports of a drop in prices however this is traditionally a quiet period due to the summer break.

Despite the falls prices are stronger than expected due to continued shortage of stock.

Mortgage availability remains tighter than for several years particularly for those looking to borrow a high proportion of the purchase price or at a high multiple of their annual income.

Nationwide comments, in its August 2009 report:"Even though house prices remain high relative to earnings, the fall in interest rates has improved the affordability of mortgages for those looking to buy a home. This helps to explain the strong rise in new buyer enquiries reported by estate agents for most of 2009. Although not all of these enquiries are turning into sales, house purchase transactions have continued to slowly increase from the record lows reached in late 2008."

However, some mainstream lenders are once again providing mortgages up to 90 per cent of the purchase price. Banks have come under increasing pressure from the government to go easy on those struggling to pay their mortgage and seek alternatives to repossession. Data shows that mortgage lending hit a nine-months high last month, but is still down 36 per cent on last year, according to the latest figures from the Council of Mortgage Lenders (CML). Gross mortgage lending totalled £16bn in July compared with £12.7bn the previous month, but the figure is still well below 2008 levels.

Today's figures from nationwide suggest house price bounce extends into August. Nationwide report:

  • House prices rose by 1.6 per cent in August
  • Year-on-year decline slows from -6.2 per cent to -2.7 per cent
  • Low interest rates helping to underpin prices for the moment

Commenting on the figures Martin Gahbauer,Nationwide's Chief Economist, says: "The price of a typical house rose for the fourth consecutive month in August, increasing by 1.6 per cent on a seasonally adjusted basis. The three month on three month rate of change - generally a smoother indicator of the near term trend - rose from 2.7 per cent in July to 3.3 per cent in August, the highest level since February 2007. At £160,224, the average price of a typical UK property is still slightly lower than 12 months ago. However, the annual rate of change rose further in August, from -6.2 per cent to -2.7 per cent. Over the first eight months of 2009, the seasonally adjusted index of house prices has risen by 3.2 per cent, though relative to the October 2007 peak it is down by 14.4 per cent."

Over the past few months there has been a rise in the number of sellers that have approached winkworth for valuations. We have noticed those who bought pre-2007 are more inclined to market their property. In particular those looking to upsize still have the ability to buy and borrow less in comparison to when the market was more busy.

Sellers with well-presented properties in good locations are finding that they can currently achieve better prices now than they have been able to do so for some time. Buyers who have steady jobs and reasonable incomes or are cash-rich and not needing a mortgage and are in it for the long term can still find good value, particularly repossessions or from those who cannot wait and need to sell promptly.

Details: Winkworth, Walthamstow office, telephone 020 8509 9171; website www.winkworth.co.uk