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 A further interest rate rise is expected in the coming months despite a slight fall in inflation.
Figures for June show that, as expected, inflation fell to 2.4 per cent as consumer prices rose.
The Office for National Statistics says that despite this, further interest rates are still expected as the current inflation figure is above the government's two per cent target.
It means that there is unlikely to be a period of respite for homeowners who will more than likely see their mortgage payments increase again in the next few months.
In addition, potential new buyers may be put off from entering the market as they simply would not be able to keep up with payments.
This is likely to lead to a slowdown in the market and comes amid predictions of doom and gloom for the housing market.
Julian King of National Homebuyers adds: "We have been predicting this for sometime.
"As the UK's leading homebuyer for people needing a quick sale of their property, seeing the volume of enquiries from people who are unable to meet their mortgage payments increase to an astronomical high is surely an indicator that things are not so good.
"We suggest that as a compounding result of interest rate rises, the economic slowdown and lack of buyers the market is heading for a small to medium-sized crash."
An economist at Bank of America has also predicted that the UK market has a 20 per cent chance of crashing in the next two years.
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