But cautious buyers, unsure of future income, don't necessarily take the highest-ratio loans.

Other agents disagree vigorously,arguing that any delay at all in signing a binding contract may result in the buyer's losing the house to another, less cautious buyer.

Doner's studies in the last six months indicated that consumers had generally become far more cautious buyers.

Prices of Treasury securities dropped, with buyers cautious ahead of this week's numerous economic reports.

But he says there are hurdles of all kinds, from more cautious buyers to a lack of credit to political uncertainty.

About 25 percent of these sales are in the form of leases, an increasingly popular purchase method that allows the cautious buyer to avoid a large down payment.

"Indeed, there are buyers, but they are cautious buyers at this yield level."

Estate agents Cluttons say a further 10 per cent drop in house prices is needed to get cautious buyers back to the market.

But with rates at current levels, "I would be a cautious buyer," Mr. Wood said.

"In North America, farmers continue to be cautious buyers, and overseas agricultural equipment demand is expected to remain soft," he added.