Aneisha Beveridge, research director at Connells Group, said: “House prices are holding steady, but the market does feel a little more sensitive than it did earlier in the year.
“Recent volatility in mortgage pricing, largely driven by developments in the Middle East, has made buyers slightly more price-conscious.
“That’s reflected in the average home in England and Wales selling for just under five per cent below its initial asking price last month, up from around 4.5 per cent when mortgage rates were at their most competitive in February.
“Even so, discounts remain well below the levels we saw towards the end of last year, when Budget-related uncertainty weighed more heavily on sentiment.
“The market has coped reasonably well with another bout of turbulence in the mortgage market.
“However, the longer borrowing costs remain elevated, the more pressure that’s likely to put on house price growth.
“But if rates settle around current levels, this is territory buyers and sellers have already navigated before.
“And it’s unlikely, on its own, to lead to any meaningful fall in house prices in the near term.”
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