Consumer confidence drops on UK house prices

The net balance for Q3 2014 was just +62, down from the net balance Q3 2013 which was +64, and the net balance Q2 2014 which was +66.

Halifax said the dip mirrors the small fall in confidence over the outlook for the economy in the coming year.

Despite this, the overall picture for the house prices remains relatively strong, with the difference between those who think it is a good time to buy and those who think it is a good time to sell converging over Q3 2014, suggesting a period of fairly stable house prices.

Craig McKinlay, mortgages director at Halifax, said: “In the last three years consumer confidence in the outlook for the housing market has increased significantly.

“For the last year however, it seems to have reached a ceiling and, with speculation as the strength of the economy increasing in the last few months, confidence has fallen to its lowest level in 12 months.

“However, the national figures mask big regional differences, and more than half of people in London (55 per cent) think the next 12 months will be a bad time to buy compared to compared to just over a third (37 per cent) of Britons overall.”

The research revealed the most frequently mentioned perceived barrier to buying is being able to raise enough housing deposit, with 57 per cent saying this was an issue.

This figure has fallen from the 63 per cent who said this one year ago in Q3 2014.

However, over the last three months, the proportion citing household finances as a barrier has risen 11 per cent from 28 per cent to 39 per cent.

Interest rate rises as a barrier to buying are a concern for one in five - 19 per cent are concerned about this. Last year’s figure was just 11 per cent.

There has been a decrease in the proportion expecting the average UK property price to rise over the next 12 months from 71 per cent in Q2 2014 to 68 per cent in Q3.

ruth.gillbe@ft.com