As with all markets, property prices are driven by supply and demand.

Over the last 6 weeks we have experienced many sellers giving us instructions to price realistically, this seems to be having the effect of attracting buyers back into the market. This appears to be reflected in the latest RICS UK housing market survey that shows that, whilst sales fell, expectations have drastically improved.

The average number of transactions per surveyor continues to fall due to a fundamental lack of mortgage finance available on the market. However, there is a feeling of optimism with the expectation that sales will improve as sellers become more realistic about the value of their house.

In July, only 27% more chartered surveyors reported a fall than a rise in new buyer enquiries compared to 35% in June and 50% in May. These are positive signs.

The more realistic house prices will create a balanced market for buyers and sellers and restrict the trend of so called ‘predatory buying' taking advantage of the slow market with low offers and aborting the natural property chain.

It is imperative that buyers and sellers alike are realistic about house prices for the market to shift up a gear. With a continued relaxation in the mortgage market there could be an autumn revival.