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Confidence in housing market drops in April

09 May 2005
House hunters felt less confident about the housing market in April, according to research released today by property website

The website's April survey of house hunters found that 54 per cent expected house prices to fall over the next 12 months - compared with less than half (48 per cent) in March.

Fears about rising interest rates were the major factor in the pessimism of 57 per cent of the people interviewed by - the highest level since August 2004, the last time that interest rates were increased.

Respondents said they expected house prices to fall by 7.7 per cent over the next 12 months. In March they expected a drop of just 2.6 per cent.

"There is no justification whatsoever for the Bank of England's Monetary Policy Committee to increase interest rates. The economy is already under enough pressure," said Jim Buckle, managing director of

However, Mr Buckle added that he believed that confidence would pick up again.

"The magnitude of the drop in confidence in April was certainly exaggerated by the general election," he said. "We expect confidence will steady somewhat from here on."

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