Increased activity in housing market fails to increase consumer confidence

Confidence in the housing market has fallen for the first time in eight months, despite recent increased activity in the housing market.

Confidence was static for four months, but has fallen by one% in September with 48% of homeowners expecting their property to rise in value over the next 12 months, compared to 63% this time in 2002 and 52% this time last year.

These latest figures indicate that although new buyer enquiries rose in August and September, homeowners are generally becoming more realistic about growth in the market especially as sellers continue to accept offers below the asking price.

Andy Gray, head of mortgages at Woolwich says: “Despite this slight drop in confidence has we expect to see confidence start to pick up again towards the early part of next year as speculation intensifies as to what impact the new pension provisions for property will have on the market.”