The UK housing market experienced a shift in the balance between supply and demand in February, with new instructions outpacing buyer interest for the second consecutive month.
According to the Royal Institution of Chartered Surveyors’ (RICS) latest housing market survey, a net balance of 15% of surveyors reported a rise, rather than a fall, in new instructions, compared with a negative balance of 5% in January.
Surveyors are still reporting house price gains in most regions but the RICS points out that “net balances are a little less positive than they were”.
The North, Yorkshire and Humberside, Wales and the West Midlands are the exceptions, with house price falls still prevalent.
In terms of price expectations, February’s balance remains in positive territory although at its lowest since July 2009.
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.