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More enquiries from buyers, more sales and fewer homes coming on to the market have begun to provide some support for property prices, according to the latest RICS' UK housing market survey.

The number of Chartered Surveyors reporting an increase in new enquiries from buyers edged up again in May, with 48 percent reporting a rise rather than a fall, the seventh consecutive monthly gain. Sales also rose, suggesting that the increase in enquiries is having an impact on transactions. 

At the same time, surveyors say that the number of new homes coming on to the market continues to fall, reducing choice for buyers.  The RICS says that the lack of new supply, coupled with the increase in activity, is now providing some support for house prices. This is being most visibly reflected in the sales-to-stock ratio, widely seen as a key indicator of market slack, which saw a sharp increase from 15.2 to 20.1 percent. 

Interestingly, expectations as to the outlook for both house prices and sales improved significantly in May, with a net balance of 40 percent more Chartered Surveyors expecting sales levels to increase, the highest figure in the survey's history. Only 11 percent more surveyors are expecting prices to fall rather than rise.

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."