Buyers remain ‘hypersensitive on price’, as housing market conditions continue to slow, the latest OnTheMarket (OTM) Property Sentiment Index shows.

Aside from the traditional housing market seasonal slowdown, the backdrop of economic uncertainty, fuelled in part by 14 consecutive interest rate rises and higher of living and concerns, have amplified seasonal effects, resulting in a sharp decline in residential property transactions.

The data provided by OTM reveals that over a third – 38% – of properties sold subject to contract within 30 days of first being listed for sale in August. But this is down from 54% August last year when the market was much busier.

Seller sentiment was not as strong as buyer confidence last month, reflecting the shift in power toward the latter, but even so, 61% of vendors were confident that they would sell within the next three months in August compared to 63% in July.

There are regional variations, with confidence decreasing in the North West and South East to 65% and 55% respectively in August, compared to 72% and 62% in July, while rising in the East Midlands to 65% in August from 57% in July.

Jason Tebb, chief executive of OTM, said: “Challenging markets tend to shake out those who aren’t serious about moving as it’s more unlikely people will wish to view properties speculatively. In trickier conditions, it can be tempting to adopt a ‘wait and see’ approach until inflation is under control or mortgages are cheaper if there is no strong motivation to move.

“Those who remain tend to be serious buyers who have to purchase or are keen to but are hyper-sensitive to pricing: if they don’t think it’s sensible, they may not even commit to a viewing. Sellers should not be disheartened, as while buyers may be fewer in number, our data suggests that they are highly motivated. There is no reason why those sellers who take advice from a local agent and price sensitively can’t successfully transact.

“While another rate rise can’t be ruled out, on the positive side, this has largely been priced in by lenders with a number reducing their mortgage rates recently.”