Its survey showed that 5% more chartered surveyors reported a fall than a rise in new property instructions, indicating supply levels, in September.
However, at the same time, new buyer enquiries increased, with 3% more surveyors seeing a rise than a fall in demand during September.
Nevertheless, surveyors highlight that the large deposits required by lenders continues to act as a barrier for many potential buyers.
RICS housing spokesperson Michael Newey said: “Falling supply of fresh stock is indicative of general fears overhanging the economy, with many potential sellers preferring to stay put for now.
“As a result, the UK housing market remains pretty flat with activity level generally subdued.”
He added: “Although it is hard to see what will give the market a lift in the near term, the announcement of a further raft of quantitative easing from the Bank of England will help to at least keep mortgage rates down.
“This, if nothing else, should ease the pressure on existing homeowners and limit the risk of a material pick-up in repossessions.”
While chartered surveyors noted only a small rise in the number of sales for the three months to August, up from 14.1 to 14.5, they noted that realistically priced properties are still selling in a challenging market.
Sales expectations continue to be positive, RICS reported, with surveyors predicting that investors in the UK will begin to turn to property as the financial markets remain turbulent.
