Property values ‘will decline’ in areas of oversupply

House prices will fall over the coming months within areas where there is an “oversupply” of properties, it has been predicted.

DTZ Residential director Russell Taylor said that towns in which there are plenty of homes on the market will experience a drop in values.

He explained: “Good quality properties in good locations will still achieve their asking price … areas of oversupply, such as regional city centres, will be the ones that will see prices fall.”

Mr Taylor said that the recent increase in the level of houses for sale in the UK may be down to a rise in confidence, but added that it could also be due to sellers becoming more “desperate”.

Falling prices and a boost in supply may be good news for people looking to take out a lower mortgage in order to become debt free in the future.

Meanwhile, property sales increased by 35.9 per cent in February, compared to January’s five per cent fall, according to Hometrack.

By Jamie Price