Dip in confidence for UK housing market

Posted: 01 Nov 2011 15:34:50 GMT

Almost one-third of Brits expect house prices to decline over the coming year.

Confidence in the UK housing market has dipped as a consequence of ongoing uncertainty regarding the wider economy.

This is the finding of the latest Halifax Housing Market Confidence Tracker, which showed more people expect house prices to tumble rather than climb across the next 12 months.

According to the study, 30 per cent of Britons believe the national average home value will fall over the coming year, meaning the headline house price outlook has now slid into negative territory.

Martin Ellis, housing economist at Halifax - which is a division of Bank of Scotland - said it does not come as a surprise that the last few months have seen confidence in the property field shaken, "given the increasing uncertainty about the current economic environment, together with pressure on householders' finances from weak earnings growth, higher inflation and tax rise".

He added, however, that record low interest rates are continuing to support the market, while house prices nationally have altered little since the beginning of 2011.
 

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