House prices rise may tail off - Rics

The slow but steady rise in house prices in recent months may be stunted as more properties come on to the market, surveyors say.

According to the Royal Institution of Chartered Surveyors (Rics), new instructions outpaced inquiries from new buyers in February, the second time this has happened this year.

The rise in house prices during the past year has been attributed by some to be as a result of a shortage of stock for sale.

Rics says it is still finding more surveyors reporting rising prices than falling prices last month.

"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' Jeremy Leaf.

"The magnitude of the gains going forward is likely to continue to ease, reflecting the fact that new supply coming on to the market is starting to outstrip fresh demand."

Rics said it was the first time in two years new sale instructions had outstripped inquiries from would-be buyers in a sustained manner.

The actual level of sales recorded by its members was hampered last month as a result of the icy weather.

As a result, the number of sales per Rics member remained at 1.4 per week.

"Surveyors still expect sales to increase, indicating that the recent drop in transactions is a reflection of recent adverse weather conditions," said Rics.

In the course of 2009 prices rose by 5%, according to the surveys published by two of the major mortgage lenders, the Halifax and the Nationwide.