Supply of property 'beginning to outstrip new buyer enquiries'

Posted: 01 Jul 2010 10:35:03 GMT

The supply of property on the UK market is beginning to outstrip new buyer enquiries, it has been claimed.

According to Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, this is the reason for the flatter trend in prices.

He made his remarks after Nationwide published its latest house price index, showing that the typical home in Britain rose in value by 0.1 per cent last month compared with May.

Mr Rubinsohn commented: "This the smallest monthly gain since February 2010, when prices on this series dropped by 0.9 per cent and, before that, from April last year."

He added that the decision made by the new government to abolish home information packs is likely to encourage a rise in new instructions to estate agents and could see the supply of property increase by around 15 per cent.

The new Conservative/Liberal Democrat coalition implemented the move in a bid to bolster the sector after taking power following the general election on May 6th.


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