Lancashire''s housing market has begun recovering as property prices drop, according to one estate agent.

Georgina Cox, managing director of Moving Works estate agency, told the Lancashire Evening Post that property prices had returned to levels seen three years ago, sparking a market revival.

She claimed that the company had seen its strongest performance all year last week, with eight sales in its Loughton office.

"I think it is that kind of realism which is bringing out the green shoots of recovery we are starting to see," she said.

Adding: "If someone comes to us thinking their property is worth the same as it was this time last year, we do not even touch it."

Meanwhile, the National Association of Estate Agents (NAEA) said the government needs to do more to restore confidence in the market.

The NAEA said consumers are still cautious with many adopting a wait and see attitude and only moving if they have to.

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