The slowdown in the market comes as buyers face higher borrowing costs. This month the average cost of a five-year fixed-rate mortgage hit the 6% barrier for the first time in three years<\/a>.<\/p>\n The average stood at 5.99% on Thursday, according to the financial information provider Moneyfacts, while the average two-year rate was not far behind at 5.97%.<\/p>\n There has been no change in the Bank of England base rate since last December but volatility in the bond market has driven up the swap rates that influence the pricing of fixed-rate mortgages.<\/p>\n While the Bank of England has kept its key interest rate on hold at 3.75%, expectations are growing that next week the monetary policy committee will vote to increase the rate for the first time in three years to 4%.<\/p>\n Robert Gardner, the chief economist at Nationwide, said the Middle East conflict had fed concerns around inflation, driving up expectations of higher interest rates.<\/p>\n Property prices are likely to fall further, he said. \u201cSurveyors report that new buyer inquiries remain weak.<\/p>\n \u201cConsumer sentiment dipped noticeably in October, with households becoming less confident about the outlook for the general economy as well as their own financial situation in the year ahead.\u201d<\/p>\n Tom Bill, the head of UK residential research at Knight Frank, added that the impact of rising mortgage costs \u201ceclipses any support measure announced in this week\u2019s budget\u201d.<\/p>\n
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