House prices fall due to extra supply

AN INFLUX of properties onto the market last month has depressed house prices, the Royal Institution for Chartered Surveyors (RICS) will say today.

Its monthly survey showed a net 17 per cent of estate agents reporting rising rather than falling prices, much less than January’s 31 per cent.

Both new buyer enquiries and new instructions rebounded from January’s very low levels but the latter rose more strongly to 15 per cent from -5 per cent. In contrast, just seven per cent of estate agents reported a rise in new buyer enquiries.

The newly agreed sales net balance fell for the second consecutive month but surveyors are still expecting sales to increase, indicating that the recent drop in transactions is a reflection of recent adverse weather conditions.

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.”