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A rise in buyer enquiries for the fifth month in a row and an improvement in newly agreed sales prompted the RICS to comment today that ‘The tentative signs of a pick-up in [property market] activity have become more broadly based'.

In its latest housing market survey, the RICS see definite signs of improvement in the market, although prices are likely to remain subdued for some time.  Newly agreed sales in March rose at their fastest rate since October 2006, and surveyor confidence in the sales outlook rose for the third month in a row. 

The number of properties sold relative to available stock, widely considered a good indicator of future price changes and a measure of ‘market slack', also rose in March, again for the third month in a row.  This could presage what the RICS calls ‘some stabilisation' in prices later this year.

New enquiries in the market increased for the fifth consecutive month.  A third (31 per cent) more Chartered Surveyors reported a rise than a fall in new buyer enquiries, up from 21 per cent in February. The RICS says that the rise in interest reflects both the drop in asking prices and the sharp fall in the cost of money. As house prices drop, those with finance are now looking to do more than window shop.

In Scotland, the great majority of surveyors (61 per cent) reported prices unchanged in the last three months, the best figure in the UK, although a third said that prices fell by as much as five per cent.  Scottish surveyors are also more optimistic about the future for prices.  While the balance of surveyors north of the border still expect prices to fall, fewer Scottish surveyors are predicting price falls than in any other part of the UK.

RICS spokesperson Ian Perry said: "Buyer interest is starting to gain real momentum but will remain frustrated while mortgage finance is scarce. Surveyors are optimistic that transaction levels will increase, especially for those with the finance to purchase family homes. However, accessibility for first time buyers is likely to remain difficult while loan to value ratios generally remain at current levels. The market is still in a fragile state but with demand continuing to pick up, there may be more signs of stabilisation in the coming months."