There is no doubt that over the past couple of years the UK’s property market has been through an extremely turbulent time, with the near financial collapse resulting in a negative effect on the mortgage and property markets.

Property prices have plunged since their peak in 2007, and with mortgage lending becoming increasing restricted the sale of properties almost ground to a halt at one point, with many homeowners finding that they were unable to sell their properties due to factors such as negative equity resulting from falling property prices or because potential buyers simply couldn’t get the mortgages that they needed.

Over the past few months, however, there has been much talk of a recovery in the property market. Property prices are said to have slowly increased over recent months, although they are still far lower than they were at their peak.

Some have also suggested that mortgage lending is becoming more freely available to some buyers, particularly those that are able to raise a substantial deposit. There have also been reports that an increasing number of people are showing interest in purchasing property after a very slow period seen earlier this year.

A number of industry groups have viewed recent figures relating to matters such as property prices, buyer interest, and mortgage lending activity as highly encouraging, and these reports have sparked speculation over whether the troubles that the housing market has experienced over the past couple of years have finally come to an end.

However, this is not a view that is shared by all industry groups, and some are convinced that this is simply a temporary blip, and that the downward spiral will recommence next year.

The National Association of Estate Agents has said that the housing market has managed to weather the traditional slowdown that is usually seen in the summer months, and this is further evidence that the market is on the way to recovery and that the only way now is up. The association said that in September property sales levels and the number of potentially interested buyers registering with estate agents had increased compared to the previous month.

However, the credit ratings agency Fitch insists that the encouraging data is only a temporary blip, and that this is simply a false dawn that is being blown out of proportion. The ratings agency is certain that rising unemployment and lack of mortgage finance will see property prices fall further, and has predicted that there will be a further fall of 17 percent in house prices in the UK.

An official from Fitch Ratings said: “Despite the fact that a global economic recovery is under way, the economic fundamentals do not auger well for a sustained strong recovery in the UK housing market.”

A number of other industry groups have mirrored this opinion, and have said that whilst data over the past few months might have been encouraging there was little evidence to show that this recovery could be sustained.

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