Confidence in housing market falls to lowest level since 2012

Jessica Nangle

October 27, 2017

Confidence in UK house prices has fallen to its lowest level since December 2012, the Halifax Housing Market Confidence Tracker has shown.

The survey, which tracks house price optimism, has dropped 14 points from April to October to +30, matching the fall seen following the EU referendum result.

Half of those surveyed now expect house prices to rise over the next year, whilst one in five believe house prices will fall; the highest proportion since October 2015.

Russell Galley, managing director at Halifax Community Bank, said: “Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market.

“Even with a potential base rate increase on the horizon, it’s significant that buyers’ concerns continue to be centred on raising deposits and job security and, as such, we do not anticipate that an increase in base rate will have a significant effect on the demand for properties.”

The ability to raise a deposit (61%) and job security (42%) remain the main barriers, with household finances recording the biggest increase (+7) since the last survey.

Despite the various increases, the amount of existing mortgage borrowers concerned about rising interest rates affecting their repayments has fallen by 36%.

Those in the West Midlands and Wales have the highest balance of people who believe the next 12 months would be a good time to buy at +30 and +26 respectively, whilst London is the only region with a negative outlook.

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