ENQUIRIES from prospective South East homebuyers saw the largest increase in two years and marked the fourth consecutive month of increases - according to the latest RICS’ (Royal Institution of Chartered Surveyors) housing market survey.

Although house prices in the South East slipped back again in October, the pace of decline was at its slowest in 15 months due to the growing demand.

Buyer enquiries in the region continue to rise and were up for a fourth consecutive month in October, with the market benefiting from the August interest rate cut.

Rising enquiries have also been translated into rising agreed sales activity. With sales rising and new selling instructions at a standstill, the stock of available property on surveyors’ books has also fallen and is down four per cent in the past three months.

Buyers still retain the balance of power, though this is beginning to shift as the recovery has been sustained.

Trevor Hines, RICS South East regional director, said: "There is further and on-going evidence of a pick up in the market with the recovery in would-be buyer interest.

"For the first time in almost 18 months, price increases were also seen in London which may herald the start of small price rises in the South East as demand grows and supply remains restricted.

"Contributing factors include diminishing uncertainties over the future of interest rates and rising employment which is lifting the demand for homes.

"The return to more balanced market conditions is welcome, though negotiations between buyers and sellers remain hard, and over-priced property continues to remain unsold. A return to boom conditions is not at all evident."