This is according to the latest RICS UK Residential Survey (for Apri), which shows the headline for new buyer enquiries, in terms of net balance, dropped from +6 to -1 in April, marking the end of three consecutive positive monthly results, indicating a more stagnant market this time round.

The regional feedback on buyer demand is mixed, with a notable loss of momentum mainly seen in London and Southern parts of England.

Looking at the number of properties available on the market, a net balance of +23 of respondents noted an increase in new instructions during April. Interestingly, this represents the most positive figure since September 2020, as sellers are likely to be feeling more comfortable in listing their properties as current market conditions continue to improve following the pandemic.

The agreed sales indicator also improved slightly in April, with a net balance reading of +5 compared to -5 last month. Although this marks the most positive reading since May 2021, it only shows a minimal increase in monthly sales.

Recent changes in financial markets, especially the reduction in expectations regarding how much the Bank of England might loosen monetary policies this year, have affected short-term sales expectations negatively. The net balance for sales expectations over the next three months dropped to -1, the lowest since October 2023 which suggests a stagnant near-term outlook.

However, respondents are still optimistic about a stronger trend in sales activity over the next twelve months, although they expect it to be slightly less robust with a net balance of +33 recorded this time, down from +46 last month.

Looking across to the lettings market, the latest feedback from respondents suggests that tenant demand continues to lose momentum. Alongside this, landlord instructions remain in short supply, recording a net balance of -13 (-18 last month), again pointing to a weakened picture.

Moving forward, rents are still expected to rise by a net balance of +33, although this marks a three-year low for the near-term rental growth expectations indicator.

Rics chief economist Simon Rubinsohn said the latest survey demonstrated the sensitivity of the sales market to interest rates at the present time, given the continuing challenge around affordability.

“A modest back up in mortgage pricing has contributed to the flatlining in the buyer enquiries metric over the past month, as well as the slightly more cautious signals around near-term expectations.

“That said, there is still a strong perception that activity in the market will pick up in the latter part of the year and into 2025, irrespective of any political uncertainty around the general election.

Former Rics residential chairman and London estate agent Jeremy Leaf, said: “These numbers are particularly interesting as they mirror the up-and-down outcome of other recent housing surveys. Last month, RICS reported demand was up for three successive months but now say it’s down.

“In our offices, we are seeing much the same with prices softening a little in response to mortgage rate upticks and the increased number of listings as the market finds a new level.

“Nevertheless, confidence remains fairly robust despite some buyers pressing the pause rather than the stop button.”

MT Finance director Tomer Aboody suggested that with mortgage rates increasing slightly recently, some buyers were holding off in order to see what the Bank of England does in coming months and whether the long-anticipated reduction in rates materialises.

“Assuming inflation stays low and interest rates do come down, this could result in a big increase in activity, which hasn’t been seen in a while, with more stock coming to market as sellers take advantage of the increase in confidence.”