Consumer confidence in the housing market continues to defy previous predictions of a downturn, acco...
Consumer confidence in the housing market continues to defy previous predictions of a downturn, according to a Woolwich survey, as it has remained steady over the last three months.
This follows the slight rise in confidence in August to 56% compared to 55% in the previous month.
The Woolwich - Barclays mortgage arm - says this shows that the 'gloomy' forecasts made earlier in the year of a housing market crash were exaggerated.
This survey - alongside other housing market indicators over the last month - suggests that the fall-back in house price inflation to a more sustainable level will be a gradual process, rather than the sharp correction that some pundits had feared, the bank says.
Andy Gray, the Woolwich's head of mortgages, says:
"Continued confidence in house prices points to a gradual slowing of the market rather than a sharp correction in the rate of house price inflation that looked like it may have been on the cards at the start of the year.
While confidence remains strong, the Woolwich still believes the slowdown of the rate of house price inflation will continue.
Increasing personal debt, slower earnings growth, lower bonus payments as well as higher household taxes will all contribute to make an increasing number of people find it hard to chase house prices any higher, the Woolwich adds.
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