Recent jitters in the housing market have continued to have a damping effect on consumers' confidence.
The Woolwich consumer confidence index shows that just over half (52 per cent) of homeowners believe their property will continue to increase invalue compared to 56 per cent in August and 62 per cent in July. Confidence is down 15 per cent from a high of 67 per cent in May this year a change which follows three base rate increases.
Andy Gray, head of mortgages at Barclays and The Woolwich, said: 'This month sees confidence at its lowest level for 16 months. The fall inconfidence is largely due to rising interest rates and speculation surrounding the sustainability of house price inflation. We expect confidence to continue to soften as interest rates are predicted to rise once more next month and believe house price inflation will slow further by the end of 2005. '
Regional Highlights
Confidence fell the most in the North West, by nine per cent to 49 per cent this month, making the North West and Wales the least confident regions in the country, despite these regions having the strongest annual house price growth*. By contrast the South West and Yorkshire were the most confident regions in the country with 59 per cent on homeowners in both regions
believing that their property would continue to increase in value over the next 12 months.
