Tesco, the UK's biggest supermarket chain, is increasing pressure on estate agents by entering into the lucrative British property market.

Sellers will be able to list their homes on a Tesco website for a one-off fee of about £200 – dramatically undercutting estate agents who charge £3,500 for an average £200,000 house.

People using the property sales service will get a Tesco-branded "for sale" sign to put up outside their home. Currently only seven per cent of houses in Britain are sold privately. Two online estate agents have already uploaded 300,000 properties on to the Tesco system.

The service includes online advertising and the supermarket says it will enable sellers to effectively become their own estate agent.

They will be able to upload up to 20 pictures of their property and arrange viewing dates with buyers directly. The site also offers details about local schools and amenities – and gives pin-sharp aerial views of locations.

The supermarket has linked up with various experts giving advice on insurance, conveyancing and other legal matters.

The site’s future success however will depend on building up further relationships with firms that already advertise properties giving the supermarket access to other online search portals. Tesco is understood to be in talks with Primelocation and Findaproperty, although both firms have denied any intention to work with the supermarket giant.

The supermarket, which announced record £2.55billion profits this year, insists its site is different to a property service run by rivals Asda which launched a property search service last year.

Mark Davis, of www.Tescopropertymarket.com, said: “This is going to revolutionise the property market. If people still want to use estate agents then they can, but we are going to give them all the tools to do it themselves.”

He said sellers will need only internet access, a tape measure and a digital camera.

Consumers will also be able to value their home by using links showing similar prices in their areas.

Mr Davis added: “There is no risk of gazumping because the system does not allow communications once a property is sold.”

Laura Wade-Gery, CEO Tesco.com, said: “Tesco Property Market offers a 'one stop shop' for everything related to moving house, and we hope this will make life a little simpler and save money for many home movers.”

Asda was the first supermarket to move into the property market and began trials last year in 21 of its northern stores offering a one per cent fixed-fee estate-agency scheme.

Click here to read our guide on how to sell your home without an estate agent.