Simon Ainsworth, head of Residential Property at Napthens solicitors, says signs are good for the New Year. He points to recent statistics from Nationwide which showed house prices increased by 0.5 per cent in November, the same rate as October.

The Royal Institution of Chartered Surveyors also reported the first fall in the number of new properties available to rent since January 2008, and Simon reveals lenders are making more mortgage products available.

New build figures were also up – figures from the National House Building Council (NHBC) showed that for the three months from August to October 2009, 24,896 applications to build new homes were received – an increase of more than 25 per cent.

However, Simon is warning that these factors could actually combine to cause prices to flatten during 2010, rather than continue to increase, and it may take some time for the markets to completely recover.

He said: “Despite a more positive 2009, figures compared to 2006 are still significantly down, and it is clear that nobody can rest on their laurels – only the strongest conveyancing firms and estate agents, providing the best levels of service, will continue to prosper.

“There are certainly positive signs for the next 12 months as we emerge from the recession, but the property market is far from where it was a few years ago.”