Confidence in the UK housing market has fallen to its lowest point in three years, according to the latest Halifax ‘confidence tracker’.
The survey, which tracks consumer sentiment on whether house prices will be higher or lower in a year’s time, shows a decline of 14 points from March when 56 per cent of people expected a rise.
Now the figure is 42 per cent, reflecting the largest recorded drop since the survey began in 2011.
Despite this, a clear majority - 57 per cent - still expect the average UK house price to be higher in a year’s time which only 15 per cent expect it to be lower.
However, only a third of people (33 per cent) feel that the next 12 months will be a good time to either buy and sell – down by 6six points from the beginning of the year.
Selling sentiment is now at its lowest since September 2013 with a fall from +31 in March to only +9 now.
The outcome of the EU referendum appears to have had little impact on buying and selling intentions, with only 15 per cent of those thinking of buying or selling a property before the vote saying they have since delayed or cancelled their plans as a result of Brexit.
Some 53 per cent of mortgage holders expect mortgage interest rates to be the same a year from now, the survey also finds.
“Optimism in the housing market has taken a fall in recent months, with many people now expecting a general slowdown in the market and no, or little, change in house prices over the coming year” says Martin Ellis, Halifax housing economist.