According to official statistics, the UK economy expanded slightly in April thanks to brisk business in bars and pubs but had a "poor month" for home builders and real estate agents.
According to the Office for National Statistics (ONS), the economy expanded by 0 point 2 percent in April after contracting in March.
The ONS claimed that the construction industry had faltered as a result of homebuyers becoming more cautious due to rising interest rates and mortgage costs.
People are "holding back" on purchasing homes, a house builder told the BBC.
The Bank of England has been raising interest rates to slow the rate of price growth, or inflation, which is currently 8 point 7 percent.
Certain mortgages have been taken off the market by some lenders as a result of rising interest rates and the increasing number of people who are reaching the end of their fixed-rate mortgage agreements.
People are "very cautious" and "taking longer to make decisions," according to Ian Burns, owner of Cameron Homes in Staffordshire.
According to him, reservations have slowed down over the last three to four weeks. If this trend continues, the build operation will have to be slowed down.
If there are no buyers for the homes we are building, we cannot just keep on building. ".
When its Monetary Policy Committee meets the following week, the Bank of England is widely anticipated to increase interest rates once more. It was predicted that the cost of borrowing would rise from 4.5 percent to 4.75%.
However, it is now anticipated that the Bank will increase interest rates to 5% following stronger than anticipated wage growth in the three months leading up to April, which is feared will keep inflation higher for longer.
Chancellor Jeremy Hunt praised the ONS data released on Wednesday but cautioned that the UK needed to combat inflation to "protect family budgets.".
The economy expanded by 0.1% over the three months leading up to April.
