Home buyer enquiries and price expectations rose to their highest level last month since April 2007, according to figures released by the Royal Institution of Chartered Surveyors (Rics).

New home buyer enquiries also rose in July - the ninth consecutive month in a row that inquiries have increased. The figures also revealed that only 8% more surveyors saw house prices fall than those who saw the costs of homes rise - the lowest figure for two years.

"Although demand for property is continuing to rebound, it still remains low from a historical perspective," said Jeremy Leaf of Rics.

Figures released by the Council of Mortgage Lenders (CML) have also revealed that the number of mortgages taken out in June this year rose by 23% compared to July’s figures.

Around 45,0000 home loans were approved for house purchases, just 6% lower than the same month last year. These figures have led to optimism that the housing market is beginning to recover.