Buyers and sellers fall as interest rates rise

The number of registered buyers in the housing market and the number of sellers on estate agents' books both decreased in February, indicating the market has begun to feel the effects of recent interest rate rises, according to the National Association of Estate Agents (NAEA).

The organisation reported that housing stock is significantly down from its position a year ago, while the average asking price for a property has dropped from £217,955 in January to £213,259 in February.

Many consumers have decided to remain in situ rather than facing the costs of climbing the property ladder, NAEA said, with the number of people looking to buy a home decreasing six per cent between January and February.

While the news may not be the best for people looking to sell a home, the effect of interest rate rises on the market may mean tenants put off buying their own property and so rent their home for longer, good news for landlords.

"The average household budget has been tightened significantly in the last few months with higher council tax, utility bills and mortgage repayments acting as a deterrent to people who would have otherwise looked to take the next step up the ladder," commented NAEA president Charles Smailes.

Tenants are currently staying in their properties for an average of 15 months, figures from the Association of Residential Letting Agents reveal.

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