This comes amid evidence that stamp duty amendments have failed to increase the number of first-time buyers.
The March survey from prop-ertyfinder.com revealed that the early 2005 rise in confidence among house-hunters petered out as fears of rising interest rates returned, with 55 per cent claiming that likely rate rises are putting them off.
In the survey average house prices are expected to fall 2.6 per cent over the next 12 months, compared to expectations of a fall of just 0.5 per cent in February.
48 per cent of respondents said they expected prices to fall over the next 12 months compared to 37 per cent in February.
Jim Buckle, managing director of propertyfinder. com, said: “Speculation has intensified in recent weeks that interest rates will rise and this has alerted buyers that they could be stung with higher mortgage payments.
“Add this to an election around the corner and everyone expects further tax rises to take another bite out of their household budget and it’s no wonder that hopes for the market are deflating.”
Mortgage Advice Bureau (MAB) has reported that the stamp duty amendment has not resulted in “any immediate increase in first-time buyer activity”.
Brian Murphy, lending manager at MAB, said: “Our research shows that raising the duty has improved the situation for buyers in moderately priced areas but they are often unaware of the changes and in more expensive areas the actual cost of purchasing will still be a problem.
