The NAEA’s monthly market report found that demand for housing had increased, more sellers were putting property onto the market and the average agent made more sales than in June.
The average agent in July had 292 registered house hunters, up from 279 in June.
Supply was also up, with agents reporting an average of 68 properties on their books, compared to 59 in June.
The percentage of sales being made to first time buyers also increased from 21% to 26%, which the NAEA suggested the decision to raise the threshold of Stamp Duty Land Tax to £250,000 is translating into sales.
Michael Jones, president of the NAEA, said the market report showed that the fragile recovery that has defined the market in 2010 was continuing.
He said: “Demand and supply both increased in July, which is great news for the housing market.
“However we should not get carried away – what we are seeing is a slow, steady and patently fragile recovery. One thing which is interesting is that consumer confidence in the market appears to be high, despite apparent uncertainty elsewhere about the future of the economy.”
Jones said that agents typically expected a slower month in August, as families put aside housing plans to enjoy the holiday. And he warned that lenders are still being too restrictive.
He said: “One message that estate agents throughout the country are giving us is that the market needs more lending.”