Greater caution appears to be being exercised across the UK housing market as house price momentum slowed to the same level it was 16 months ago, according to the latest RICS Residential Market Survey.

Nationally, new buyer demand slipped for the third consecutive month and in London, caution took a particular toll, with prospective new buyer demand seeing its fifth consecutive monthly decline – a trend not seen since April 2012.

In Scotland, the effects of the referendum on independence appeared particularly significant, with a net balance of 6% more surveyors reporting a drop in the number of interested buyers (compared to a net balance of 49% seeing more interest in August). 

Meanwhile, stock coming onto the market remained virtually unchanged in September (a net balance of -1%), which led to a number of surveyors reporting a ‘return to more sensible prices’, as properties staying on the market for longer were now beginning to receive offers below asking price.

Simon Rubinsohn, RICS chief economist, said: “Demand and supply are looking a little more balanced, which is removing some of the upward pressure in prices, particularly in London. This is a healthy development. Part of this is down to the Bank of England becoming more vocal about the risks, part of this is down to affordability, part of this is down to the new mortgage rules and part of this is down to expectations of higher interest rates.”