The housing market in Sheffield is on the up - with rising prices, packed auction rooms and the return of bidding wars all pointing to a property comeback.

The average cost of a house in the city has increased by more than 4% in the past year, and 2.4% in the last three months, a new report has found.

In Sheffield the average house price is now £130,560, the study revealed.

But estate agents say price rises are higher in the south west of the city, with increases of over eight per cent in areas such as Dore, Ecclesall and Fulwood.

Demand is far outstripping supply and bidding wars - a hallmark of the pre-recession housing boom - have re-emerged as buyers strive to secure the best properties.

Stuart Goff, managing director of Hunters estate agents, which has branches in Crookes and Woodseats, said the market was ‘very buoyant’, while Adrian Little, partner at auctions firm Mark Jenkinson and Son, said: “Prices are very strong, results have been well above expectations. Our success rate has been in excess of 90 per cent.”

The report, by property analyst Hometrack, said Sheffield’s prices are still to return to the levels before the financial crash. At their highest point in 2007, houses in the city cost £134,737 on average.

If you are planning on investing in the Sheffield property market, or just want to know more, things to consider for a successful buy to let investment, one source of information is the Sheffield Property Blog.