"Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market."
The survey, which tracks consumer sentiment on whether house prices will be higher or lower in a year’s time, shows that house price optimism has dropped 14 points between April and October, matching the record fall seen following the EU referendum result.
Half of those surveyed now expect house prices to rise over the next year, the lowest level since April 2013 (45%), whilst one in five think house prices will fall, the highest point since October 2012.
Despite expectations of a Base Rate rise, an increase is not perceived as the main barrier for people in general to buy a house (15%). Instead, the ability to raise a deposit (61%) and job security (42%) remain the main barriers, with household finances recording the biggest increase (+7) since the last survey.
When asking existing mortgage borrowers about their concern in rising interest rates affecting their ability to meet their repayments only a third (36%) show concern, down six percentage points since 2014.
Russell Galley, Managing Director at Halifax Community Bank, said: “Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market.
“Even with a potential base rate increase on the horizon, it’s significant that buyers’ concerns continue to be centred on raising deposits and job security and, as such, we do not anticipate that an increase in Base Rate will have a significant effect on the demand for properties.”
