Figures detailed in a newly-released report have indicated that supply is now outstripping demand in the UK property market, marking the first sustained change in the market for two years. The report, produced by the Royal Institution of Chartered Surveyors, indicated that the balance between supply and demand changed to incline towards the supply side for the second month in a row, as the net balance for new instructions continued to outpace buyer interest.

During February 2010 the number of new instructions and new buyer inquiries rebounded following January’s weather-hit drop, and February also saw both net balances return positive values. February also saw the new instructions net balance outstrip the new buyers net balance for the second month in a row. Also in February around 7% more chartered surveyors recorded an initial increase and then drop in new buyer enquiries as compared with January, up from a negative reading of 20%. Also, a balance of around 15% surveyors reported an increase in new instructions in February, as compared to a negative balance of 5% for the previous month.

Added to this, 17% more chartered surveyors in January recorded an increase and then a drop in house prices, a figure down from January’s mark of 31%, and regional surveyors are continuing to record house price rises in the majority of areas despite the fact that net balances are not quite as positive as previously.

The report by the RICS also shows that surveyors working in Yorkshire and Humberside, the North, Wales and the West Midlands are all recording falls in property prices. Despite this, however, the net balance for price expectations remained positive, despite the fact that the very latest figure is the lowest recording since July 2009. Also, the most widely-regarded indicated, the sales-to-stock-ratio has also begun to fall to a lower level which coincides with the property market begin to loosen up a little. According to Jeremy Leaf, an RICS spokesman, the majority of market indicators remain in positive territory and are consistent with future increases in house prices. He did state, however, that any raises in house prices in the future would be likely to ease somewhat, ‘reflecting the fact that new supply entering the market is beginning to outstrip fresh demand.’ In the meantime however the current good mortgage deals offered by many institutions for first-time buyers as well as overseas mortgage options looking to stimulate the market is shifting the current housing situation to a buyer’s rather than a seller’s avenue.