The number of properties coming into the market outpaced inquiries from new buyers, a survey by the Royal Institution of Chartered Surveyors (RICS) has indicated.
House prices are not expected to rise further anytime soon. This is because the glut of new properties is putting downward pressure on prices for the second month in a row.
RICS said its monthly house price balance index had a much bigger fall than many analysts expected, declining from 31 per cent in January to 17 per cent in February. This is the steepest monthly fall since April 2008. It indicates that supply has become greater than demand and is applying the brakes to rising prices.
Region-wise, prices fell in Wales, northern England, Yorkshire, Humberside and the West Midlands. Surveyors reported rises in London, southern and eastern England and Scotland, according to RICS.
RICS's result contrasts with surveys published by two major mortgage lenders, Halifax and Nationwide, both of which reported an unexpected dip in prices in February.
House prices have risen around 10 percent from a five-year low set in the first half of 2009.
