Consumer confidence in the UK housing market slipped last month, suggesting the property boom might have reached its peak, the Woolwich Consumer Confidence Index reveals.
The Woolwich, which a part of the Barclays Group, says consumer confidence in June dropped for the first time since December last year, falling from 67% in May to 65%.
Rising interest rates and BoE governor Mervyn King's warning house price may fall seem to have spur the drop, the Woolwich suggests.
Andy Gray, head of mortgages at Barclays and The Woolwich, says: "This drop in confidence was inevitable. The combination of two consecutive monthly rate rises and Mervyn King's warning to prospective homebuyers of a potential fall in the housing market has undoubtedly unsettled the market a little.
"With two further interest rate increases predicted this year, the next in August, we would expect consumer confidence to gradually decline as people become more cautious about future borrowing decisions," he concludes.
But although the index suggests a drop in confidence, it is still relatively high compared with the same month last year when just 56% of homeowners were confident their property would continue to increase in value.IFAonline
Warns on profits
Hargreave Hale seeking legal advice
Latest news and analysis
First mentioned in Cridland Report