Andy Gray, head of mortgages at Barclays and The Woolwich, said: 'With confidence levels at the lowest for four years, the decision to hold rates came as no surprise following the slowdown in the housing market and lower growth in borrowing. We expect confidence to soften further as
interest rates are set to peak at 5 per cent in early 2005.'
The Woolwich consumer confidence index shows that just 45 per cent of homeowners now believe their property will continue to increase in value compared to 52 per cent in September and 56 per cent in August. October sees consumer confidence at it lowest level for four years (45 per cent in October 2000).
Regional Highlights
Confidence fell the most in Yorkshire and the South East, by 12 per cent to 47 and 41 per cent respectively, making the South East the least confident region in the country. By contrast the South West was the most confident region in the country with 54 per cent on homeowners in both regions believing that their property would continue to increase in value over the
next 12 months.
