A recent uprise in buyer enquiries and a shortage in properties is starting to move the housing market according to the Royal Institution of Chartered Surveyors (Rics).

Buyer enquires in May 2009 was the highest amount estate agents have seen since 1999.  The average number of properties sold over the past three months rose to 11.8, up from 10.6. Fewer surveyors also reported a fall in house prices.

Houses on estate agents books are falling month by month 58.4% from 69.4%.  The lack of supply and with the increase in buyer interest is starting to stablise the housing market.  Although this seems very positive predictions are that house prices still have some more to fall.

The findings from Rics were supported by house price figures published today by the government’s communities department , which showed prices rose by 1.1% month-on-month in April, after dropping 1.3% in March. This means the year-on-year fall in house prices narrowed to 13% in April from 13.6% in March.

Nationwide report that a 1.2% jump between April and May saw the annual decline reduce from 15% to 11.3%.  This annoucment rose UK house builder stocks higher on Friday.  Taylor Wimpey stocks went from a day low of 30p on friday to todays high of  35.45p after the news was released.  up 7.31% today so far as of 16:25.

Over the weekend the FT report that top london estate agents are seeing the return of Gazumping.  It seems that the amount of cash buyers is the highest the market has ever seen.  A report in the FT says that 45% of sales over £5m in London were cash buyers last month.  This has doubled since levels from 2006 and 2007.  The usual levels are a third compared to last months 45%.

It would look like that alot of the cash buyers are from overseas investors taking advantage of the low sterling rate.  The outlook is still bleak for first time buyers as it is still difficult to get a mortgage as individuals worry about their future employment status.

Some speculate that there is a lack of supply on the market.  But the FT says “stock levels may be falling not because demand is soaking up inventory quickly, but because so few homeowners want to put their property on the market.”

A recent survey shows that businesses are still declining in May despite optimism that the market was starting to pick up.

This shows that shoppers are still wary about spending money in this difficult times.  CBI which took the survey of many retailers said that 31% of retailers reported rising sales in May compared to last year May.  48% reported falling sales in May, giving a net balace of 17%.  Which gives a good balance of +3%, in April, which some analysts hoped had marked the beginning of a retail recovery.

The CBI has said the decline has slowed down compared to 40-50% negative balances seen in January, which is giving signs that the end of the recession is not to far away, possibly by the end of 2009.

A decline in consumer spending by money struggling shoppers fearing for their jobs drove the sharp fall in GDP, of 1.9%, in the first three months of 2009.