LONDON, July 13 Reuters Britain39;s housing market showed signs of a slowdown in June and property surveyors expect activity to remain subdued as higher borrowing costs hit new buyer enquiries, according to an industry survey on Thursday.

The Royal Institution of Chartered Surveyors RICS said a net balance of 45 in a poll of its members reported a fall in new buyer enquiries last month, down from the 20 in May.

June39;s reading which represents the difference in percentage points between members seeing rises and falls in new buyer enquiries was the most negative figure since a 51 in October last year in the aftermath of former prime minister Liz Truss39;s minibudget economic plan.

Britain39;s housing market faces pressure from softer buyer demand and falling house prices against a backdrop of surging mortgage rates and the Bank of England39;s battle to tame stubborn inflation. Average twoyear fixed mortgage rates hit a 15year high earlier this week.

Simon Rubinsohn, chief economist at RICS, said activity levels were likely to remain subdued in this environment.

The latest increase in interest rates and the impact this has already had on mortgage rates is clearly visible in … buyer enquiries, sales and prices which have all retreated over the past month, Rubinsohn said.

Financial markets expect the BoE, which has raised interest rates for 13 times in a row since December 2021, to increase its Bank Rate to 6.25 by the end of this year, up from 5 now.

RICS39;…