Zoopla has warned rising interest rates could reduce the size of mortgages buyers can afford by as much as 28% next year.

The property portal, in its latest house price index, said an expected doubling in mortgage rates by the final quarter of 2022 compared to rates at the start of the year would significantly hit buying power.

It says if a buyer uses a 75% loan-to-value mortgage to buy an average priced UK home, this would cost £825 each month in mortgage repayments at a rate of 2%. But keeping repayments the same and moving to a 5% rate means the buyer can only afford a mortgage that is 28% smaller.