The housing market remains stuck in a rut as weak demand hits sales and prices, according to industry experts.

A report by the Royal Institution of Chartered Surveyors (RICS) showed inquiries by new buyers were well down in July amid concerns over high mortgage costs and elevated house prices.

The number of sales agreed also fell as did prices with London, the South East and South West the worst hit.

The report comes after the boss of Bellway this week called for a immediate cut in stamp duty and a new Help to Buy scheme to revive the moribund housing market.

RICS chief economist Simon Rubinsohn said: 'The housing market remains subdued, and while that is not usual over the summer months, it is clear that the combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment.'

Tom Bill, head of UK residential research at Knight Frank, said: 'The backdrop is less volatile than last summer but upwards pressure on mortgage rates and tax uncertainty are the familiar causes of hesitation among buyers, which means demand is improving but from a low base.'

Jeremy Leaf, a north London estate agent, said: 'It may be down to the time of year, but fewer listings mean the relatively low number of proceedable buyers have less choice, which is slowly increasing the pace of decision making.

'However, the market remains price sensitive so generating buyer traction remains challenging, particularly while uncertainty about possible mortgage rate increases continues.'

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said the weakness in new buyer inquiries 'shows the wider issues at play for the housing market, as even with a seasonal summer slowdown, many buyers could be worried about making a large financial commitment right now or feel they need to delay their plans due to mortgage rate volatility'.