The latest house price index from Zoopla shows that annual growth in asking prices has remained stable month-on-month at 1.3% in March, unchanged from February.

But agreed sales are down by 2% year on year and Zoopla says the market is being held up by committed movers who already have mortgages agreed.

There are signs that those who are not yet committed to a purchase may be delaying moving decisions and adopting a more cautious, wait-and-see approach. The largest decline in active buyers was recorded in the North East and West Midlands, albeit with enquiries falling off a high base compared to last year. 

Zoopla executive director Richard Donnell, Executive Director at Zoopla says: “The market remains active, but becoming increasingly reliant on a smaller pool of serious buyers. 

“Some early stage buyers are adopting a wait-and-see approach but there is a sizable group of committed buyers who are pressing ahead with housing purchases. 

“If mortgage rates stabilise at current levels we expect sales activity to continue to hold up well compared to last year.

“Further increases in borrowing costs could weaken demand and impact sales volumes later in the year. 

“The outlook is far from clear, although we can see demand has stabilised over recent days.

“For buyers, there is less competition and more choice, but affordability is becoming more stretched. 

“For sellers, homes are still selling, but buyers are more selective and price-sensitive. 

“Setting a realistic asking price with the help of a local agent will be critical to securing a sale.” 

MT Finance director Tomer Aboody says: “While the average house price remains steady, the fall-off in demand is of far greater importance.

“We have seen a lack of desire from the government to help kick start or boost the property market, and if anything, it has helped create even tougher conditions.

“The property market is the lifeblood of the UK economy, and until it is better supported, we will continue to see not only a stagnant property market, but also a stagnant economy.”

North London estate agent and former RICS residential chairman Jeremy Leaf says: “Although we may have feared the worst, bearing in mind the turmoil in the world and uncertainty over direction of travel for interest rates and inflation, so far the overwhelming majority of our buyers and sellers seem shaken but not stirred.

“There is no question the number of enquiries has dropped but the more serious buyers and sellers seem keen to get on with their moves.

“Worries about higher costs have inevitably filtered down into negotiations but so far a sense of realism is prevailing.

“Looking forward, we expect this new normal to continue at least until it becomes more apparent how long hostilities will last.”