According to the National Association of Estate Agents’ (NAEA) latest survey, 71% of its agents reported that interest rate rises have had a negative effect on the housing market in their area. Around 6% believed it to have been a positive move and the remaining 23% considered them to have had little effect.

It also revealed that 61% of its agents had experienced a sharp drop in the number of house hunters on their books following the latest rise. Of this figure, 48% saw them decline by 5-10%, followed by 14% of agents who had seen a reduction of 11-15% and finally 13% of agents saw a 16+% decrease in new applicants registered. The remaining 25% experienced a drop of 4% or more.

Stewart Lilly, NAEA president, said: “There is a glimmer of hope that further interest rate rises are temporarily on hold following the latest round of reports. If this is indeed the case it will provide some much needed comfort to house hunters.

“The increases have already had a tightening effect on the housing market, however the Bank of England has suggested that there will need to be a further rate rise to at least 6% before we reach the peak of the cycle.”