Supply of UK property 'on the rise'

Supply of housing is starting to outstrip demand, according to one body.

The Royal Institute of Chartered Surveyors (RICS) has released its latest UK Housing Market survey, which shows that the sector has recovered from the dip in January.

Jeremy Leaf, RICS spokesperson, noted that the majority of market indicators are still optimistic on the issue of further house price increases.

But the scale of the gains going forward is likely to taper because new supply coming into the market is starting to outstrip fresh demand.

The report found that 17% more surveyors had reported a rise rather than a fall during the second month of the year, which was down from 31% at the beginning of 2010.

It was recently announced by the organisation that the number of properties being sold in the UK could reach 70,000 per month by the end of the year, which would be up by nearly 10,000 compared with the end of 2009.