The Island economy could be experiencing the first signs of recovery as Britain officially emerges from recession.

A survey conducted by the Times Guardian found that estate agents in particular are encouraged by the level of recent business.

House prices on the Island are up, as is the number of potential customers registering with them.

Mark Cross, a partner at Rule and Rule, Sheppey’s longest established independent estate agent, said it’s great to have some positive news.

He said although things could all change again next month, buyers are getting their confidence back.

Mr Cross said: “It has been difficult but I thought things would be worse than they have turned out to be.”

According to Mr Cross, the Island has reflected the nationwide trend in house prices – with them at their lowest about nine – 10 months ago.

He gave an example that at the height of the market, an average two-bed property in Sheerness might have cost between £110,000 and £120,000 but at the lowest, last January time, the same property would be between £70,000 and £80,000.

Now, Mr Cross said, the price has risen slightly to between £85,000 and £95,000, although prices are now staying relatively static.

He added: “There’s never a happy medium in our business – there’s not a great deal being sold or coming on to the market but we have got more enquiries.

“There was a lot of pessimism at the beginning of last year and this year there seems to be a lot more optimism now but it will be a year of many more changes.

“People are still losing their jobs but hopefully things will change for the better.

“I think Sheppey escaped reasonably well and has fared better than other parts of the country – none of the major employers locally made massive redundancies.

Andrew Wilson, owner of Swale Properties which has offices in Sheerness and Iwade, said they have had the best January for five years.

He said: “Everyone knows how bad the last two years have been – it goes without saying.

“But this January has been exceptionally good. I wish I knew the exact reason but there are more people registering and looking and a surprising number of people looking who have nothing to sell.”

Mr Wilson also said that 12 months ago people were putting in offers which were way below the asking price, but people were being forced to accept.

He added: “Those days are well behind us. Prices are only creeping up but at least they are not going down. I hope this year carries on as it’s started.”

Things are slightly different in the retail business where there is not such an obvious improvement as in the housing market.

Brian Spoor, who owns Brian’s in Beach Street, Sheerness, said his trade in particular is suffering because people aren’t buying things like washing machines unless they need to.

Mr Spoor said: “People are getting over their Christmas bills and worrying about what the pound is worth.

“Just before Christmas I was wondering what the recession was all about because we weren’t feeling it but after Christmas I think I’m 50 per cent down on last year.

“I know if people are spending money and they want appliance I will get a share, but if they are not spending it they are not spending it.”

Fiona Mcmillan and Pete Giffen, who run OSOU in High Street, Sheerness, said it is down to businesses to invest in themselves as well as the public to shop there.

They said if they invest in making the business look attractive and bring in fresh stock people will notice.

She said: “Even though we are out of recession there’s still a long way to go for it to filter through into the retail sector

“People have got to be confident again so we haven’t seen the improvement yet but we need to stay positive.

“Touch wood even through last year we stayed steady but this time of year is always difficult until the holiday makers are back.

“We need people to use the town and support us.”