Fewer new instructions and heightened buyer interest in May is providing a surprising boost to the housing market.

According to a recent survey, rising interest in buying houses coupled with fewer people putting property up for sale is helping the housing market to stabilise.

Conducted by the Royal Institution of Chartered Surveyors (RICS), new buyer enquiries increased at a faster rate and new instructions to agents fell in May.

This activity is stabilising the housing market, according to RICS.

The news comes after both Halifax and Nationwide published housing surveys reporting a rise in UK house prices.

New buyer enquiries have risen for the seventh consecutive month, at the fastest rate since 1999.

The number of newly agreed sales has remained high for the third month in a row and the average number of sales per surveyor has also increased.

The most significant finding from the May survey is the decreasing number of new instructions to sell property. The number has dropped every month for the past two years and the trend appears to be set to continue. The change in rule concerning Home Information Packs is being held partially to blame for the results.

As a result, the average number of unsold properties on surveyors’ books continues to decline. It is currently at 58.4, which is the lowest it has been since May 2004 and is a 35% reduction compared with the same time last year.

Ian Perry, RICS spokesperson, said: “On the face of it, the housing market does appear to be close to bottoming out with activity picking up in a material way and prices at last stabilising. However it is important to remember that the lack of supply has been as important in underpinning prices as the rise in demand.

“Moreover, with the economic backdrop still quite uncertain, unemployment is set to continue increasing sharply and finance for first time buyers is still in short supply, there are a number of significant obstacles for the market to overcome over the coming months.”