Connells Survey and Valuation said last month had seen more property valuation activity than any month since 2007.

The firm said it had witnessed a 36% month-on-month increase in activity in March and this represented a 42% increase when compared to March 2014.

First-time buyers have returned to the market in force with activity in this sector up 40% year-on-year, ahead of other parts of the market.

By comparison, activity in the home movers segment grew by 23% over the last year.

John Bagshaw, corporate services director of Connells Survey & Valuation, said confidence in the wider economy was moving into the housing market, but warned of upcoming challenges.

“Optimism looks to be catching, seeping from the wider economy and jobs situation into the property market,” he said.

“Looking ahead, election uncertainty is a real factor and not to be underestimated, yet a wider trend of buoyancy is definitely emerging.

“For half a decade surprises have tended to be unpleasant ones – but this spring the housing market is now surprising on the upside.”

Bagshaw said if rates remained low more people would be looking to remortgage in the coming months.

“Many households with a mortgage that seemed extremely competitive just a few years ago could find it in their interests to refinance, even to the security of a fixed rate,” he added. “Such a recalibration of the mortgage market is working alongside a resurgent property purchase market to stoke demand for valuations.

“Of course a little further ahead, there is still the prospect of interest rate rises. In fact deflation caused by a volatile oil price could make a turning point for interest rates more dramatic as and when this occurs. So there is no space for complacency – although that isn’t stopping people looking for the best deals.”