The number of homes sold rose to its highest level for three months in June, a survey found.
The monthly national housing survey from property research firm Hometrack said the volume of sales agreed by agents had risen to 10.6%, the highest since 12.6% in March.
The recovery in sales followed subdued sales in May but the researchers said the bounce was also due to lower prices, which fell 0.1% in June on average.
There are strong regional variations in the market with homes spending six weeks on the market in London but 14 weeks in Wales. Supply has grown across all regions but demand is far stronger, and more in line with supply, in London, the south east and West Midlands than in other regions.
Richard Donnell, director of research at Hometrack, said: “The first six months of 2011 have seen the housing market holding up better than many had expected. Low transaction volumes, low mortgage rates and forbearance by lenders limiting the number of forced sales have all played their part. While average prices have slipped back by 1%, sales volumes have increased off the back of higher demand and greater realism over achievable prices on behalf of sellers.”
He added that subdued demand in the second half of the year was expected to push prices down, with prices falling by 2% over 2011.