Supply outstripping demand in fragile UK housing market

Housing market analysts have today said the balance between supply and demand in the UK housing market has shifted towards the supply side.

The Royal Institution of Chartered Surveyors (Rics) said new instructions outpaced buyer interest for a second consecutive month.

Rics said new instruction and new buyer enquiries rebounded in February following a "weather skewed dip in January" – with seven per cent more chartered surveyors reporting a rise than a fall in new buyer enquiries compared with the previous month.

Rics spokesperson Jeremy Leaf said: "Most market indicators are still positive and consistent with further house price increases.

"However the magnitude of the gains going forward is likely to continue to ease reflecting the fact that new supply coming onto the market is starting to outstrip fresh demand."

Some 17 per cent more chartered surveyors reported a rise than a fall in house prices down from 31 per cent in January.

Rics added that the price expectations net balance also remains in positive territory but the latest reading is the lowest since July 2009.