The finance expert warned that demand for mortgages will continue to drop throughout the year, even if this decrease does not appear “anywhere near so dramatic” in the next few months.
Ms Coles added: “More recently rates have been dropping, but they remain significantly higher than before the chaos unfolded.
“Buyers are also reeling from the shock of the rate rises, which put a real dent in their confidence. So although the fall in mortgage demand isn’t expected to be anywhere near so dramatic in the first three months of the year, it’s still expected to be down again.
“It will take a while for all of this to feed into the figures on house prices, but when it does, we can expect some significant changes.”