The UK housing market slowed slightly in May, as housebuyers started to take on board the effects of the recent interest rake hikes by the Bank of England.
The Royal Institution of Chartered Surveyors (RICS) issued its regular monthly report, which said that a balance of +24% of its members reported house prices rising in May, lower than the 29% in April and below the +26% predicted.
RICS spokesman, Jeremy Leaf, said:
"With interest rates expected to rise even higher and some home owners fearing the end of fixed rate deals, affordability conditions are set to worsen across the board and will herald a cooling market."
RICS noted that the effect of the rates rises have had on new buyer enquiries has so far been quite limited, with the absolute level of demand still high in light of buoyant economic conditions.
This modest slow down augurs for a further rate rise, as the Bank of England will wish to temper the housing market further.