The Royal Institution of Chartered Surveyors (RICS) said that, during the month, 9% more surveyors reported a rise in inquiries from potential buyers than those reporting a fall.
RICS said the warmer weather encouraged some potential buyers, while others wanted to snap up properties before a holiday from stamp duty ended. But prices in all regions except London continued to fall.
Overall, 10% more surveyors reported falling house prices in March than those reporting a rise. However, this was the least negative reading since June 2010. The declines in prices were modest, RICS said, with surveyors reporting price falls of up to 2%.
Northern Ireland saw the biggest increase in the proportion of surveyors reporting falling prices.
"There has been a gentle increase in activity across the market in the early part of the year but it remains to be seen whether this can continue, given the changes in the Budget and ongoing problems affecting the economy," said RICS' chief economist Simon Rubinsohn.
"London continues to outperform the rest of the UK in terms of prices but, interestingly, the North West did see an increase in activity in March." The RICS survey covers the UK, but it collects most of its data from England and Wales.
Some buyers were keen to make a purchase before 24 March, the deadline for first-time buyers wanting to take advantage of a holiday from 1% stamp duty on houses costing less than £250,000. The stamp duty tax band is being reintroduced because Chancellor George Osborne believes the holiday has not been effective in encouraging more people to buy a home. Instead, the government is introducing other incentives to persuade lenders to offer loans to potential buyers.
David Sansome, Managing Director at Sansome & George said: “Spring is a traditionally strong time for the housing market and 2012 looks to be no exception.
Whilst the market is undoubtedly affected by regional factors, in London and the South East the levels of activity are strong and prices are generally higher than they were before the credit crunch.
Our offices are recording good levels of instructions and sales and shall be pleased to advise any homeowners on their own individual property and situation.”
