Falls in homebuyer demand and agreed sales became less severe in August, suggesting the UK housing market may be starting to stabilise, according to surveyors.

A net balance of 19% of property professionals reported a fall in new buyer inquiries rather than an increase, the Royal Institution of Chartered Surveyors (RICS) said.

The net balance is the proportion of survey respondents that report a rise versus those reporting a fall.

Although buyer inquiries continued to decline, the August reading was the least negative since January and marked the fifth consecutive monthly improvement.

RICS head of market research and analysis Tarrant Parsons said the figures showed “a market that is gradually finding its footing”, with key measures of activity becoming progressively less negative in recent months.

The survey also found that a net balance of 17% of property professionals reported a fall in agreed sales. This was the least negative reading since February and represented a marked improvement from April, when the balance stood at 38% reporting a decline in sales.

Expectations for sales over the next three months also improved. A net balance of 3% of professionals expected sales to fall, compared with 13% in July.

Looking 12 months ahead, a positive net balance of 6% of professionals expected sales volumes to increase, up from 3% previously, suggesting a modest improvement in confidence.

However, house prices remained under pressure. A net balance of 28% of professionals reported falling prices in August, only slightly better than the 29% recorded in July but an improvement on April’s balance of 35%.

London continued to record a more negative price balance than the UK average, although the figure improved compared with July.

Northern Ireland was among the areas where professionals continued to report rising prices, while the North West of England maintained a period of gentle price growth.

The supply of new properties coming on to the market was broadly unchanged. The net balance for new sales instructions stood at zero in August, compared with minus 2% in July.

The lettings market continued to face stronger demand from tenants alongside constrained supply, putting upward pressure on rents.

The net balance of professionals expecting rents to rise over the next three months increased to 44% in August, up from 33% in July. Over the next 12 months, professionals expect UK rents to rise by around 3% on average.

Parsons said the improving indicators were encouraging but warned that any recovery remained fragile.

He highlighted uncertainty over the future direction of borrowing costs and the October Budget, adding that “headwinds over the shorter term remain pronounced, even though recent market trends have appeared more stable”.

Estate agent Jeremy Leaf, of Jeremy Leaf & Co, said: “In our offices, a modest uptick in demand has coincided with holiday returnees re-starting property searches, albeit not in the same volume as this time last year.

“Buyers and sellers are finding it difficult to shrug off worries about the impact of the protracted war in Iran on the cost of living and mortgage rates in particular. Speculation about the impact of the Budget on taxes is adding to buyer caution.”