Newly agreed sales are rising more widely across the market than at any point since data was first collected in 1999, according to the Royal Institute of Chartered Surveyors (RICS).

Buyer inquiries have been rising for the past eight months and, according to RICS, this data reflects interest in buying homes beginning to channel through to more sales. More estate agents expect house prices to rise than fall for the first time since May 2007, providing further evidence that the worst of the housing crash might be over.

However, there is a lack of supply as sellers hold back from putting their homes on the market in the midst of a slump. In addition, analysts say the weakness in bank lending to homebuyers is likely to restrain house prices, while unemployment will serve as a further drag on recovery.

Simon Rubinsohn, economist at RICS, said: “The market is only going to edge up marginally over the course of this year. The lack of supply is the key factor. If supply were to increase, the underpinning of the market may unwind.”