The estate agency and financial services group said buyer enquiries in the sales market and the number of viewings conducted rose marginally while the number of market appraisals carried out dipped by 1%.
However the number of new instructions fell 20% compared to July 2010 and remained the same in July this year as the month before.
Lettings
The number of rental property viewings by tenants increased by 6% in July - the fourth consecutive monthly increase.
The number of properties available to rent also rose by 0.9% in July compared to the previous month – a 16% increase compared to July 2010.
Countrywide said new registrations by people looking to rent meant there were now four tenants vying for each property.
Mortgages
The overall number of mortgage applications fell 10% in July compared to June 2011 but represented an increase of 11% compared to July 2010.
The average interest rate on purchase mortgages applied for in July by Countrywide customers hit 4.22%, a fall of 0.9% in the month.
The average loan size is now 75% loan to value – the highest it has been for over three years.
The average LTV of mortgages applied for in the same period last year was 71% at a rate of 5.32% highlighting the increasingly competitive rates and higher LTV products now being offered by lenders.
Applications for fixed rate mortgages dominated Countrywide's Top 10 Most Popular Mortgages index with all ten being fixed rate products.
In contrast in the buy-to-let sector fixed rate mortgages made up 67% of all applications - the lowest percentage since December 2010.
Countrywide said the sharp monthly fall of 9% reflected the increase in the number of investors choosing to take advantage of competitive variable rate products of offer as market commentators anticipate interest rates will remain at historical lows over the coming months.
Grenville Turner, chief executive of Countrywide, said: "The housing market continues to be robust with both transaction volumes and sale prices remaining broadly stable.
“As the UK economy continues to face considerable challenges, lending volumes are not likely to substantially improve until well into 2012.
“The size of the deposit remains the biggest issue facing consumers, not affordability of the loan itself. Whilst lenders offer increasingly competitive rates to potential borrowers, more help with the size of their deposit would be more attractive right now.”
