HOUSE sales in the East of England hit a three- year high during March as the region saw a rise in the number of new buyer enquiries.
A survey conducted by the Royal Institute of Chartered Surveyors (RICS) this month revealed an average of 18 home sales per surveyor over the previous three months.
This increasing stability was mirrored by prices with fewer respondents in the East reporting negative prices during March compared with last month.
This increase in activity is seen as a sign of growing market confidence, linked to the Funding for Lenders Scheme, designed to encourage the amount banks lend out, plus an influx of first-time buyers.
Terry Holmes, director of Beresfords, which has branches across the region, said: "I think both towns (Chelmsford and Brentwood) are proving to be very, very popular, which is no surprise, given that we have great transport links into London.
"Brentwood is a very popular area and since Chelmsford got the city tag there's been a lot more activity and house prices have risen.
"There's been a significant increase in the first-time-buy and buy-to-let market, as well as tenants looking to buy because these sectors choose when to enter the market."
Nationally, the buy-to-let market is up 15 per cent on the same period last year.
Initially, under the Funding for Lenders Scheme, increased lending by banks failed to translate into further house sales.
But the March figures show otherwise, with the number of sales per surveyor at the highest it has been since November 2009.
Mr Holmes added: "People say it's impossible to get a mortgage. It's not, unless you have bad credit history.
"With things like the government-backed scheme, it still requires the people to have confidence in the market.
"But this extra confidence feeds back on itself; for every £1 spent on a new build, it generates nearly £3 in the local economy as builders hire local contractors and so on.
"The perception is that rental property is the future but, at the end of the day, rental properties have to be owned by someone.
"People see it as an investment, with the way pensions are going. Lots of landlords with one or two properties are people who weren't around 10 or 15 years ago."
As well as rising sales, surveyors have also reported seeing less negative pricing, with 29 per cent posting their highest enquiry figures since May 2012.
Nick Oliver, deputy manager of the branch of Douglas Allen in Billericay, said: "It's all looking pretty hopeful. The way the market is going, it's on the right track, going up a bit, about one per cent.
"The first-time buyers' market is the major factor behind this increase. With interest rates so low, it's very encouraging for buyers.
"The Funding for Lenders Scheme is dependent on the amount of new-build properties, but it's all very encouraging for the future of the housing market."
At a regional level, the survey suggests that, on average, surveyors in the West Midlands have seen the biggest increase in homes sold since the start of the year, followed by those respondents working in the London area.
Robert Swiney, RICS East spokesperson, said: "The inclement weather had a negative effect on sales, yet the market outlook is more positive than it has been for some time. After an unpredictable six months, we are now seeing greater stability in the market, no doubt affected by government support for first time buyers.
"It is heartening that new enquiries have reached an eleven month high and with future sales expectations in positive territory, we can only hope this translates into market buoyancy."