Low levels of interest from buyers led to the continued slowdown of the UK property market in October.

According to the latest figures from the RICS, agreed sales declined and price trends were flat last month, leading surveyors to predict that the market will remain subdued in the near term.

The RICS UK Residential Market Survey for October showed that 20 per cent more respondents saw a decline in interest from buyers than in September.

Meanwhile 20 per cent more respondents also reported a decline in transactions nationally. The only areas that saw a pick up for agreed sales were Wales, Scotland and the North East.

Simon Rubinsohn, RICS chief economist, said: “The combination of the increased costs of moving, a lack of fresh stock coming to the market, uncertainly over the political climate and now an interest rate hike appears to be taking its toll on activity in the housing market. With both buyer enquiries slipping and sales expectations also subdued, the sense is that homeowners are staying put and first time purchasers are increasingly focusing on that part of the market supported by the Help to Buy incentive. A stagnant second-hand market is bad news for the wider economy, not just in terms of spending but also because it restricts mobility.”

He went on to say that there is particular pressure on the higher end of the property market in the capital, but that this was not representative of the rest of the country.

“Prices do now seem under pressure at the more expensive end of the market with a further rise in the number of properties transacting at below the asking price," said Mr Rubinsohn. "But it is important not to characterise the whole of the market by what is happening in parts of London and the wider South-East."

The RICS respondents predict that sales will remain flat over the next three months. Predictions for the next 12 months have now turned negative as a result of the latest figures.