The average number of transactions per surveyor fell further in June but some would-be-buyers are again showing interest in the market, says RICS' UK housing market survey published today.

The RICS house price balance improved slightly for the second consecutive month but still remains a significantly depressed figure.

A total 88 per cent more Chartered Surveyors reported a fall than a rise in house prices, a decrease from 92.2 per cent in April.

The regional picture remains gloomy, though the price balance was two per cent less in the South West than the national figure at 86 per cent.

The inability of many to get secure mortgage finance is reflected in the collapse in transactions.

The average number of transactions per surveyor (over the last three months) is now at 15.3, the lowest figure since the survey began and the net balance of new agreed sales remains in negative territory.

Sales in Wiltshire have seen some improvement over the past month but are still declining.

Demand is weak with the balance of surveyors reporting new buyer enquiries still well into negative territory.

However, there has been a noticeable improvement in the trend with 35 per cent more Chartered Surveyors reporting a fall in buyer enquires compared to 50 per cent in May and 69 per cent in April.

Surveyors report that some buy-to-let investors are entering the market to take advantage of rising rents and equally that predatory buyers are looking to bargain for reductions in a falling market.

In the South West new buyer enquiries figures show significant improvement but are still well below the survey's average, with 17 per cent reporting a fall in enquiries last month, compared with 54 per cent in May.

The lack of new instructions to sell property continues to provide a layer of support to the market. Large numbers of distress sales (either repossessions or sales from those attempting to avoid the repossession process) have not taken place and the employment picture has not deteriorated to a degree where repossession levels have started to accelerate.

The balance of Chartered Surveyors reporting new instructions to sell property fell to -13 pe rcent from -25 in May.

Iain Cowan, RICS South West spokesperson from Atwell Martin, Swindon comments on the local market: "Sales are down in the Swindon area on what we would normally expect for this traditionally busy time of year. However there has been as flurry of sales in the new homes market during June, with levels higher than this time last year as developers offer lower prices and more incentives than ever.

"The apartment's market has been particular hit by the market slow down, with lenders looking for 20-25 per cent deposit on these "riskier" investments. Potential buyers that are cash purchasers, or at least less reliant on finance, are finding good deals are out there in the current market. Prices seem to have reached the bottom of the curve and further falls are hopefully unlikely."

5:00pm Tuesday 15th July 2008

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