RICS report steadying house prices

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, according to the RICS housing market survey . 40% of surveyors now expect sales levels to increase, the highest percentage in the survey's 11-year history, although new instructions remain at a low level, meaning that the number of properties on surveyors' books has fallen from an average of 69.4 to 58.4 in the past month.

As a result, the uptake in demand combined with a narrowing of supply has acted to shore up house prices, says the survey.

Ian Perry, a spokesperson for the RICS, 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.”