THERE can be no denying that the property market in Bristol has endured a pretty torrid time over the last five years.

Just before the start of the recession and the resulting financial crisis houses prices in the city hit a peak after almost two decades of incredible and unbroken growth.

The lack of available mortgages and uncertainty surrounding the economy has badly hit the sector, but now it seems there are signs of life returning to the market.

London always seems to be immune from the problems which affect the rest of the country but it appears that Bristol is fast becoming one of the most desirable places to live outside of the Home Counties.

While the housing market in most major provincial cities and regions has struggled to recover, there are definite signs to be optimistic in Bristol and the surrounding area.

According to the latest batch of figures from the Nationwide building society, property prices in the capital of the South West actually rose by four per cent last year while in most other parts of the country they fell.

The latest figures follow a three per cent year-on-year increase and mean that Bristol is among the best-performing provincial cities in the country.

Statistics should always come with a health warning but even official Government statistics back up the fact that Bristol is faring much better than its regional rivals.

The most recent figures from the Department for Communities and Local Government make for a depressing read for the national scene.

According to the Government department, nationally the value of houses in the country has dropped for the 12th month in a row and the typical three-bedroom semi is now worth £205,796.

But yet again Bristol and the South West performed much better in contrast to the rest of the country. While other areas saw large falls, Bristol house prices remained steady.

And out on the ground the word coming from estate agents in the city is that there are definite signs that there are reasons to be cheerful once again.

Estate agent Besley Hill has decided the time is right to expand in Thornbury.

Managing director Adam Offer, who is based at the new Thornbury office, explained the reasoning behind the expansion.

He said: "The reason for the move was to relocate to more prestigious accommodation with a better window display so we can compete at a higher level with our local competition.

"During 2011 we saw sales increase for the Thornbury branch by some 70 per cent – so to move on to the next level we had to have a premises to reflect our success."

He added: "We have also boosted the team at Thornbury to include two sales staff plus branch manager. We have increased our internet exposure massively – we now feature on over 70 property websites including FindaProperty, PrimeLocation and Rightmove, to mention a few.

"We are also avid Twitter fans and regular bloggers and have an active Facebook page. Social media is a very important tool for wide exposure of clients' homes."

Richard Manning, from Be Streets Ahead in Horfield, is also feeling upbeat about the future. He said: "We have definitely seen a good start to the year and there has been a big increase in enquiries.

"There is a feeling of a real kick-start to the year thanks in part to people trying to take advantage before the changes to stamp duty come into effect at the end of the month."

He added: "I don't think we will get back to where we were in 2007 but things are definitely improving; we are seeing a slow steady increase in enquiries and new properties coming on the market."

According to the official statistics the average price of a house in Bristol now stands at £224,982.

It should be remembered that over the past decade property prices in Bristol have risen by a staggering 87 per cent, one of the largest increases in the country.

Nationwide chief economist Robert Gardner said: "The rise in house prices recorded over the past 12 months could hardly be described as a strong performance, but against a backdrop of anaemic economic growth and a deteriorating labour market, UK house prices were surprisingly resilient."

According to the organisation which represents chartered surveyors the housing market in Bristol has withstood the recession better than most.

Ian Perry, from the Royal Institute of Chartered Surveyors, said: "While it is encouraging that sales activity in Bristol and the South West held up relatively well towards the end of the year, continuing problems with the economy seem to be weighing heavily on the UK housing market and expectations for the coming months are fairly subdued.

"With sales expectations being fairly flat, it is important that vendors are realistic in their pricing if they wish the sale to go through in good time."

According to the latest figures there are currently 3,826 houses for sale in Bristol. The average price for houses on the market is currently £222,649 and the average time a property stays on the market is 167 days. An average three-bedroom house in the city costs £207,623.