A further influx of homeowners putting their property on the market has increased the downward pressure on house prices, the latest data has revealed.
The Royal Institution of Chartered Surveyors (RICS) said that homeowners appeared to be testing the market ahead of the imminent public spending cuts, or were trying to sell before a possible deterioration in the economy.
Regionally, the North saw the biggest leap in new instructions to sell, while London, the South West and Yorkshire and The Humber also reported large increases in seller activity.
At the same time, however, demand for property from homebuyers was said to remain subdued, with people either waiting to see what will happen to the market over the coming months or struggling to secure mortgage finance.
As a consequence of the heightened supply of property and the weak demand, prices continued to edge lower, dropping for the third month in a row.
And looking forward, surveyors are predicting further price falls.
"The fresh influx of property to the market combined with a lack of buyers remains the key problem affecting the sector," said RICS spokesperson, Ian Perry.
"First time buyers are in particularly short supply as the high deposits required by lenders prevent them from taking their first steps on the property ladder.
"Without sufficient demand property prices continue to slip back. However, many areas are reporting a correction rather than dramatic falls in prices and vendors who are prepared to be realistic with pricing are still able to achieve a sale. It's very much a buyers market at the moment."
Despite mortgage deals not being as freely available as they once were, there are still some competitive deals available if you search hard enough.
Providers such as HSBC, first direct, ING Direct and Northern Rock are all offering some competitive mortgage deals at present.
Meanwhile, for first time buyers, Yorkshire Building Society has a number of mortgage deals available to borrowers with only a 10% deposit. Northern Rock and first direct are also offering deals to those with a 15% deposit.
Find the best mortgage rate - Compare best selling mortgages
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.