In further worrying news for those with a stake in the housing market, figures show that the demand for rented properties in the UK suffered its worst slowdown for two years in the three months to April.
The lettings survey from the Royal Institute of Chartered Surveyors showed demand being hit.
RICS spokesman, Jeremy Leaf, said:
"Housebuyers are returning to the market to avoid rising borrowing costs, signalling a drop in demand for rental property.
Rising borrowing costs and a subsequent drop in yields have also contributed to a worrying time for landlords."
New landlord instructions, an indicator of how many people are buying to let, fell slightly in the quarter to April.
Leaf added:
"The fall in activity has been driven by a continued reduction in yields and signs that underlying house price growth is beginning to slow.
Interest rate rises later in the year will have a further dampening effect, but the underlying strength of the economy and an active housing market should ensure a soft landing for many."
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