Estate agent: House sales have improved dramatically

Home buyer activity is increasing fastest in parts of the UK where prices have been the most depressed, according to the Royal Institution of Chartered Surveyors (RICS).

Meanwhile, the Office for National Statistics (ONS) said the rate of house price inflation in the UK was continuing to rise, with prices in the year to June rising by 3.1%, compared to 2.9% in May.

One chain of estate agencies in Wales has seen a 10% annual growth in sales for the first half of the year across its branches.

Estate agent Jayne Morris told BBC News she had experienced higher demand and increased sales due to first time buyers being able to obtain 95% mortgages.

She said most prices were not yet at pre-recession levels but offers were now approaching or meeting the asking price.