THERE is a glimmer of hope for homeowners looking to sell in Kent and the South East.

The latest monthly housing market survey from the Royal Institution of Chartered Surveyors (RICS), reported the number of would-be homebuyers in the region rose in June for the first time in 14 months.

The slight upturn in new buyer enquiries, after more than a year of consecutive falls, suggests confidence has been boosted by increasing speculation that interest rates will fall, although the rise in buyer activity is from a low base, with overall market conditions in the South East still subdued.

However, despite a rise in enquiries, newly agreed sales weakened in June to their lowest level since September 2004.

Across the South East surveyors anticipate the level of agreed sales will improve.

South East house prices continued to decline in June, though at a slightly slower pace, with 51 per cent of chartered surveyors reporting falls, compared to only five per cent who had witnessed a rise, with 44 per cent believing it had stayed the same.

Prices are continuing to fall across the country, with the steepest falls in much of Southern England, including London and the South East.

June also saw a rise in the amount of property on the market, though at the slowest pace of increase since January.

With selling instructions continuing to rise, buyers look set to maintain their strong bargaining position. This has led surveyors to predict further price falls in the coming months, though their overall outlook is at its most optimistic in seven months.

Completed sales levels remain unchanged but are up by almost five per cent from February’s low. However, they remain 25 per cent lower than this time last year, reflecting the sharp fall in activity at the end of 2004.

Trevor Hines, RICS South East regional director, said: "A revival in buyer interest has been recorded in June, but must be seen against a background of subdued market conditions.

"The clear signs of a broad base economic slowdown, evident also on the High Street, means that housing demand will remain low for the rest of the year and further price falls are to be anticipated across the region.

"RICS believes a modest interest rate cut is now warranted to prevent any further deterioration of the economy."