LONDON (Reuters] – Although Britain’s house prices have been rising rapidly for six months, a survey on Thursday showed that the market may soon slow down due to a tightening cost of living.

Royal Institution of Chartered Surveyors reported that a net balance of +74% of members had reported a rise of house prices in January. This was up from December’s +70% and the highest reading since July. A Reuters poll showed a reading in the region of +68%.

This report was consistent with other studies that showed Britain’s housing market maintained much of its momentum into 2022, even though temporary tax breaks for property purchases were being phased out in the second-half of 2021.

RICS has cast doubts on the strength of the current housing market, despite household budgets being cut by rising inflation and tax increases.

Simon Rubinsohn, RICS’ chief economist said that there is an unanswered question about the effect of rising interest rates and the rise in cost of living on homebuyer confidence. He was referring to last week’s Bank of England decision to increase borrowing costs by 2%.

Halifax, the mortgage company, warned earlier this week that the rate of house price growth — currently at 10% according to latest data – would slow significantly despite the limited supply of homes on the market.

Rubinsohn expressed concern that RICS’s measures of the rents and prices of houses for the next twelve months reached series highs. It was a sign that there was a tipping point.