The U.K. housing market may be losing steam, with survey data showing that the number of properties coming onto the market has continued to outstrip the number of buyers in February.
The Royal Institute of Chartered Surveyors said on Tuesday that a net 17% saw house prices rising in February, lower than January's 31%. This was way below analyst expectations for a net house price balance of 30%.
The net balance is calculated by subtracting the percentage of surveyors reporting falling prices from those reporting rising prices.
RICS said the number of people selling their home climbed quicker than the number of buyers entering the market in February - the second month in a row that this had happened.
The rise in house prices during the past year has been largely attributed to demand outstripping supply, and the shift in balance indicates that house prices may stabilize in the coming months.
"There was a resumption of interest in the housing market following the fall that took place in January which was due partly to the extreme weather conditions during that month and the reversion back to the previous stamp duty regime," said RICS spokesman Jeremy Leaf.
"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."
This view largely concurs with other house price indicators, with both Nationwide and Halifax announcing house price falls in February.
Surveyors found home prices were generally on the rise in London and the South East of England. Falling prices were reported in Wales, Yorkshire & Humberside, the North of England and West Midlands.
Meanwhile, a separate British Retail Consortium survey showed today that total retail sales value in the U.K. roses 2.2% on a like-for-like basis in February compared to a year ago. On a total basis, sales rose 4.5% compared to February 2009.
The BRC cautioned, however, that the comparison to one year ago was distorted by the winter weather of February 2009.
"Consumer confidence is certainly up on this time last year but with unemployment rising again, spending plans are falling," said BRC director Stephen Robertson.
"When the weather-related distortions are stripped away, it's clear customers are still cautious."
For comments and feedback: editorial@rttnews.com