Rics says housing supply is outstripping demand

Housing market supply is once again outstripping demand, according to the Royal Institution of Chartered Surveyors Rics.

The organisation says new instructions outpaced buyer interest for a second consecutive month during February.

Rics reported that seven per cent more chartered surveyors reported a rise than a fall in new buyer enquiries compared with January.

Jeremy Leaf, a spokesperson for the institution, 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," he claimed.

Last week, Post Office Mortgages reported that more than a quarter of UK consumers are ignorant as to the rate they are paying on their mortgage.

The lender also claimed that a third of borrowers are currently repaying their mortgage at their lender's standard variable rate, despite the availability of cheaper mortgages elsewhere.

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2010-03-10 13:05:34 © Moneyextra.com