However, there are distinct signs that consumer confidence is improving again in the south: New buyer enquiries and surveyor confidence are both generally stronger, continuing the improvement seen in London for April. Confidence levels are at their highest level for six months, with 13% more RICS members saying they expect to be handling more sales over the next three months.

RICS housing spokesman Ian Perry said: 'The market remains sluggish due to a weakness in demand, with overall sales down 21% for May compared to last year, and the stocks of unsold properties on the market at the highest level since September 2000.

"The south continues to experience declining prices but despite this we are seeing confidence from London spreading out across the southern region. The declining number of enquiries has shown some signs of bottoming out indicating the market is stabilising, rather than showing any renewed vigour just yet."