Housing demand and sales were broadly flat last month compared to December, according to the Royal Institute of Chartered Surveyors (RICS), which pointed to the recent spike in gilt yields as a potential reason.
Last month UK government bonds, also known as gilts, saw a significant sell-off, causing yields to rise sharply and reach their highest levels since the 2008 financial crisis.
Meanwhile, the rental market saw demand remain roughly the same, while respondents said fewer landlords were making property available.
The rise in the cost of Government borrowing in January dented people’s appetite to buy and sell houses during the winter month, a new survey of estate agents suggests.
Respondents indicated that interest in home buying was roughly the same as the previous month, while agreed sales rose only “very marginally”.
