Completed property sales are up and new purchase enquiries have risen for the second consecutive month reports the Royal Institution of Chartered Surveyors (RICS).
Although overall market conditions remain subdued, the housing market's lowest activity levels may have passed.
The latest RICS housing market survey released today (16th August), indicates that price declines are at their slowest in five months. Sales are still down 18 per cent compared to last year, but up from February when they fell to 36 per cent.
The number of chartered surveyors reporting price falls for July fell to 36 per cent, down from 42 per cent in June. House prices slipped across the country, with the exception of Scotland and the North West, where prices increased for the first time in almost a year.
July saw a further rise in properties on the market, though growth in the number of sellers slowed to its lowest in over a year. The buyer's market continues as the stock of unsold properties is still relatively high, ensuring potential purchasers have plenty of choice and maintain the upper hand in negotiations.
Although surveyors expect prices to drop again over the coming months, with two notable exceptions, namely London and the North West, the outlook is at its least negative in a year. The anticipation of an interest rate cut in August has helped to raise surveyors' sales outlook, which is at a two year high. While the economy has slowed, growth continues at a modest pace which is conducive for generating housing demand.
According to RICS housing market spokesperson, Jeremy Leaf:
"Some signs of recovery are evident in the market. Would-be buyers have become more confident as a result of the interest rate outlook, while the economy continues to deliver steady growth, despite the past year's slowdown. The recent terror attacks have not had any impact on house prices, even in London.
"The August interest rate cut will support a further rise in buyer activity, though there is little prospect of a renewed house price boom anytime soon."
