A further increase in both new buyer enquiries and sales, as well as a reduction in the level of stocks on surveyors books has begun to provide some support for property prices, says Royal Institute of Chartered Surveyors' (RICS) UK housing market survey.

The number of Chartered Surveyors seeing an increase in new enquiries edged up again in May, with 48% reporting a rise rather than a fall, the seventh consecutive monthly gain. Sales also rose, indicating that the increase in footfall of potential buyers is steadily improving activity in the housing market. The average numbers of properties sold over the past three months rose to 11.8, up from 10.6. At the same time the net balance of surveyors reporting a fall in house prices rose from a negative balance of 58.7 to 44.1%.

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Commenting, RICS spokesperson Ian Perry said: "On the face of it, the housing market does appear to be close to bottoming out with activity picking up in a material way and prices at last stabilising. However it is important to remember that the lack of supply has been as important in underpinning prices as the rise in demand. Moreover, with the economic backdrop still quite uncertain, unemployment is set to continue increasing sharply and finance for first time buyers is still in short supply, there are a number of significant obstacles for the market to overcome over the coming months."

(CD/JM)