Demand for houses in the South West rose at its fastest rate since summer last year, according to a survey by the Royal Institute of Chartered Surveyors.
Despite this, prices continued to fall, although the RICS said the amount of homes coming onto the market also improved.
Whilst rent in the private housing sector reached another new high last month, the South West has bucked the trend, with rates dropping by 1.5% annually.
Demand for rental homes has rocketed in the last year as people struggle to get on the property ladder because they cannot raise a deposit or meet lenders' toughened borrowing criteria.
Although rents increased by 3.2% nationally to an average of £741pcm, rates in the South West fell to an average of £638.
The findings come a day after the Money Advice Trust announced that a record 12,000 tenants were struggling with arrears had contacted its national debtline this year - the biggest number in its 26-year history.
A parish council has been granted the right to mount a High Court challenge to plans for a controversial housing development near a quiet Cornish village.
Lanner Parish Council says the 25-home affordable housing development on land close to the village, near Redruth, goes against published planning policy.
– Mr Justice Collins"It is not for me to decide whether, in the end, it succeeds, but it is clearly arguable that there has been a failure to appreciate that this is outside the policy and thus there would be a positive requirement to explain why, in those circumstances, notwithstanding it is contrary to the policy, it is appropriate to grant permission.
The judicial review challenge is likely to go before the High Court in the autumn.
Residents old and new from Plymouth's North Prospect Estate have been sharing their memories of living there. The reunion comes as much of the estate is being rebuilt in a ten year regeneration programme.
Many of the streets now resemble a ghost town as more and more residents have been relocated ahead of demolition.
Teignbridge District Council has approved plans for 65 new homes on a green-field site in Exminster. Residents had previously said the properties would put too much strain on local amenities and the village school.
Protests are being held in Taunton tonight against revised proposals to build hundreds of homes of the edge of the town. Two years ago residents fought a successful campaign against previous plans to develop the site known as the Vivary Wedge.
Jonathan Gibson reports from Plymouth on a dramatic fall in the number of new affordable homes, with the South West's low wages and high prices making the situation even worse.
The South West is falling short of affordable homes. The number of new builds funded by the Homes and Communities Agency has dropped by 2/3 in the last year. The economic downturn means land earmarked for housing remains undeveloped.
Controversial plans to build thousands of homes at East Coker have been given the go ahead. South Somerset council held a full council meeting earlier today to discuss the proposals and have now reached their verdict
Residents are unhappy at plans to build thousands of homes in and around Yeovil. Residents opposed to the plans filled a council meeting today to try and get the proposals scrapped.
David Cloke, who lives in East Coker, say there is little support for the plans that could see homes built in the historic village.
Discussions by South Somerset District Council could go into tomorrow before a decision is reached.