The outlook for UK house prices and sales improved significantly in May, according to the latest RICS housing market survey.
The survey reported a record level of confidence, with a significant surge in the number of chartered surveyors expecting sales levels to rise rather than fall.
The average numbers of properties sold over the past three months rose to 11.8, up from 10.6.
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.”
The RICS survey also found that the number of surveyors seeing an increase in new enquiries had edged higher in May, with 48% reporting a rise rather than a fall.
Sales also rose, but from very depressed levels. The average number of properties sold in the past three months rose to 11.8, up from 10.6.
RICS added that the number of new instructions is continuing to fall, with the average number of properties on surveyor’s books dropping in the past month to 58.4 from 69.4.
It said the lack of new supply, coupled with the increase in activity, was now providing some support for house prices.
