THE amount of property coming on to the market has risen to its highest level since May 2003, according to research out.

The Royal Institution of Chartered Surveyors said February saw a modest increase in the number of agreed sales, although completed sales slipped slightly.

The number of new queries from potential buyers remained unchanged.

Concerns over another increase in interest rates are holding back demand, despite the generally strong economy and labour market, the RICS report said.

Buyer activity is still limited, while the number of sellers continues to increase moderately, resulting in a significant increase of property on surveyors' books, which is up 32pc over the past year.