Woolwich finds housing market confidence steady

16 August 2005
Confidence in the housing market remained unchanged in July and for the fourth consecutive month, new figures show.

According to the July Woolwich Consumer Confidence Index, 49 per cent of homeowners believe property prices will increase over the next 12 months.

This figure has been constant since April, but reflects a decline in confidence over the past year. In July 2004, 62 per cent of homeowners expected prices to rise.

Commenting on the prospective impact of this month's cut in interest rates, on the housing market, Andy Gray, head of mortgages at Woolwich, said: "It’s the first cut in the base rate for two years, so this is our best chance to shake the housing market from its lethargy.

"Those with existing mortgages will be able to loosen their belts a little, but whether it is enough to entice more buyers to the market is open to question? We will look with interest to see how buyers respond."

Prudential's latest Mood of the Nation index, published last week, found continued growing confidence in Britain's property market.

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