The NAEA’s monthly market report found the average agent 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%.
Michael Jones, president of the NAEA, says the market report showed that the fragile recovery that has defined the market in 2010 was continuing but estate agents want to see more lending.
He adds: “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.”