The property market is showing signs of picking up, according to a report published today.

The Royal Institution of Chartered Surveyors (Rics) housing market survey showed the number of houses sold as a percentage of stock totals rose for the third month running, and the number of enquiries from first time buyers went up for the fifth straight month. The improvement in the market was most pronounced in London and Wales.

Howard Archer, chief UK & European economist at IHS Global Insight, welcomed the news but sounded a note of caution. He said: "There are increasing signs that the housing market activity may have passed its worst point.

"Nevertheless, housing market activity is still very low by long-term norms and any pick up in activity over the coming months is likely to be gradual and fitful given ongoing very poor economic fundamentals and still tight credit conditions."

And Rics spokesperson Ian Perry called for more to be done to help those buyers who needed mortgages.

He 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," he added.
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