House prices fall as supply outshines demand

More properties were put onto the market for sale during February, which eased the shortage of homes in the UK market.

The Royal Institution of Chartered Surveyors said the number of houses for sale outstripped inquiries from potential buyers.

The RICS posted an increase in the number of agents reporting a supply increase rather than a decline from -20 per cent in January to 15 per cent in February.

This rise outshined the number of surveyors reporting an increase rather than a decline in demand to 7 per cent in February from -20 per cent in the previous month.

The balance of surveyors reporting an increase rather than a decline in the house prices slipped to 17 per cent in February from 31 per cent in the previous month.

Speaking on the topic, the RICS said, "The magnitude of the gains going forward is likely to continue to ease, reflecting the fact that new supply coming on to the market is starting to outstrip fresh demand."

Earlier, Nationwide and Halifax had also reported declines in property prices in February.

Improvement in the market is bringing more properties to the market for sale. The end of stamp duty holiday also contributed to the decline in demand.