This means that more survey respondents reported an increase in new buyer enquiries than the number who reported a decrease, resulting in the first net positive reading for demand since the end of last year.

June’s figure was +3%, which was a significant upward swing from -22% in May.

There was also a recovery in the number of sales agreed, with fewer survey reporting a decrease, which took the net balance to -3%.

While the reading for sales remained in negative territory, it was significantly better than the -25% and -28% reported in earlier surveys.

There was a slight decline in the number of new instructions from sellers, from +7% to +3%.

House prices remain in slightly negative territory, but with the net balance for June at -7%, close to May’s reading of -8%, meaning more respondents are still reporting decreases in property prices in their area than increases.

However, the outlook for the next year ahead is more positive with 24% of respondents expecting prices to rise over the next 12 months.

Tenant demand remained stable, with a net balance of -2% for June. Instructions from landlords continued to decline, with a net balance of -21%.

Looking ahead, 24% of respondents expect rents to rise in the next three months, but this is down from +43% in May.

Rics head of market research and analysis Tarrant Parsons says: “The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility.

“The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge.

“Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment.

“That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind.”

Market reaction

North London estate agent and former Rics residential chairman Jeremy Leaf says: “The market feels a bit like one step forward, one-and-a-half steps back. Although doing its best to recover activity levels prevailing earlier in the year, there’s little sign of a significant pick up yet.

“In our offices, demand has improved, particularly for houses rather than flats, and most sales agreed are staying that way despite some price renegotiation.

“However, the amount of property available and worries about the economy – regardless of the prospect of further interest rate cuts later in the year – are proving more relevant for many.”

MT Finance director Tomer Aboody says: “Activity in the market continues to strengthen as buyers return after the lull following the end of the stamp duty holiday.

“First-time purchaser numbers in particular are picking up as interest rates remain steady and lenders more flexible when it comes to mortgage approvals.

“However, sales numbers still need to improve as this will benefit the wider economy, not just the housing market.

“Some encouragement is required via a reform in stamp duty to encourage those moving up the ladder, as well as those downsizing, to take the plunge.”

Shawbrook managing director of real estate Emma Cox says: “As market conditions begin to settle and rising house prices have started to plateau, we’re seeing a welcome return to growth in buyer demand, which has perked up to positive figures for the first time since December last year.

“It’s clear that a quiet confidence is returning, and buyers have adjusted to a new landscape now that the stamp duty exemption removal is firmly in the rear view mirror.”