Bottom of property market in sight, survey finds

However, despite this increased interest, first-time buyers are still struggling to get their foot on the property ladder, with the availability of mortgage finance still a major problem.

According to the RICS new buyer enquiry series, many potential purchasers believe that the market has reached a bottom, but first-time buyers are still being denied access to the property ladder.

The survey found that 71 per cent of chartered surveyors think that the lower house prices were responsible for the growth in housing enquires, while 48 per cent believed that buyers are convinced that the bottom of the market is in sight.

Only 35 per cent of surveyors believe that lower mortgage rates are tempting buyers, meanwhile just 15 per cent referred to positive personal circumstances overwhelming negative macro concerns.

Nearly three quarters (74 per cent) of chartered surveyors reported that it is existing owner occupiers who are driving the renewed level of interest while 38 per cent of surveyors indicated that investors are coming back into the market.

However, only 23 per cent of surveyors thought that first-time buyers are a factor in the market.

Interestingly, almost one in 10 respondents suggested that overseas buyers were now looking for opportunities in the UK residential market, benefiting as they are, from favourable currency movements.

Simon Rubinsohn, chief economist at RICS, said: "Interest from owner occupiers is likely to persist over the coming months as those with large deposits look to capitalise on the drop in house prices.

"However, a sharply deteriorating employment picture may eat away at this improvement in sentiment pushing potential buyers back to the sidelines.

"To prevent this happening and help restore an orderly housing market, the government urgently needs to address the issue of the availability of mortgage finance.

"It is essential that guarantees for residential mortgage backed securities are introduced sooner rather than later."