The September housing market survey from the trade body revealed the pace of improvement in buyer interest has now slowed for the third consecutive month. The net balance of surveyors reporting an increase in new buyer enquiries slipped from 47% in August to 36% in September.

The number of surveyors reporting a rise in new buyer enquires in London dropped from 71% to 45%. Surveyors reporting an increase in new instructions slipped from 12% in August to 4% in September.

Correspondingly, the average number of unsold properties on surveyors’ books remained unchanged at 64.

In more positive news, transaction levels continued to improve in September with the amount of sales per surveyor rising to 18 over the past three months. As a result, sales to stock ratio rose for the ninth consecutive month to reach 29, its highest level since December 2007.

The balance of chartered surveyors reporting rises rather than falls in house prices reached 22% in September, its highest result since May 2007. The South of England is leading the upturn in prices with the balance of surveyors reporting rises rather than falls for London and the South East climbing to 79% and 52% respectively.

Ian Perry, spokesperson for RICS, said a lack of supply is underpinning the rise in house prices with new instructions to estate agents only edging up gradually.

He added: “Despite the problems first-time buyers are continuing to encounter in securing finance, the level of enquiries from potential purchasers is increasing. This imbalance between demand and supply suggests that house prices will move higher in the near term.”