Chartered surveyors in the West Midlands were optimistic for future house prices, according to the latest industry survey.
House price pessimism eased slightly as transaction levels held firm, according to the RICS February 2012 UK Housing Market Survey.
Prices saw a slight upward shift last month with surveyors reporting a net balance of -29 per cent.
While still firmly negative, this represents the strongest reading since June 2010.
House prices in the region continued to fall during February. Some 46 per cent more chartered surveyors reported price falls rather than rises in the last month.
Alan Collett, RICS housing spokesperson, said: “With the recent upturn in activity brought on by the end of the stamp duty holiday, it seems that a renewed sense of optimism may be slowly returning to the UK property market.
“West Midlands chartered surveyors’ price predictions were also less pessimistic during February.
“However, with affordable mortgage finance still out of reach for many potential first time buyers, it remains to be seen whether the more optimistic outlook for future sales can be sustained beyond the expiry of the stamp duty holiday.”
Transaction levels held their previous level with the average amount of sales per surveyor, by branch, coming in at 18.
Fresh interest from potential buyers was in positive territory during February with a net balance of nine percent more respondents reporting increases in demand.
Andrew Oulsnam from Robert Oulsnam & Company, Birmingham, said: “The property market remains very difficult with insufficient new instructions but better than expected sales.”
Surveyors report that problems accessing affordable mortgage finance continue to hinder many first time buyers who would otherwise be looking to get onto the property ladder.
New instructions, which indicate supply levels to the market, were also in positive territory during February with 18 per cent more surveyors reporting instructions rose rather than fell.
New stock coming to the market has now risen, albeit relatively modestly, for six successive months.
Looking ahead, with a marginally less pessimistic outlook surrounding future prices, surveyors expect transaction levels to continue to rise.
A net balance of 16 percent more surveyors predict sales to increase over the coming three months.