New homebuyer enquiries increased for the seventh consecutive month and the net balance of house surveyors reporting falling rather than rising prices narrowed in May to -44, according to data from the Royal Institute of Chartered Surveyors (RICS).

Although the majority of surveyors are still reporting that house prices are declining, the latest reading of -44 represents the best result since November 2007.

Further evidence that the housing market may have started to recover occurred last week when the Bank of England reported a rise in mortgage approvals in May and Hometrack, a provider of housing information, announced an increase in house sales.