Property gloom is growing

CONFIDENCE in the housing market is dwindling fast, according to a new survey.

It shows that nearly a third of house-hunters expect prices to fall over the next 12 months.

The survey by property website assertahome.com shows that confidence has been dented by the rising cost of mortgages after four base rate rises since last November.

At the start of the year, only 9% of homebuyers thought prices could fall.

The analysis comes as the Monetary Policy Committee meets this week to decide whether the base rate should stay at 4.75% or rise again.

Assertahome managing director Jim Buckle said: 'No one can now dispute that the housing market has stalled. Confidence remains very fragile. There is nothing to justify further interest-rate pressure on hard-pressed mortgage borrowers.'

Nationwide building society said last week that house prices rose in September by a modest 0.2%. It predicted a soft landing for the market, a view at odds with the International Monetary Fund, which said that prices could be 20% higher than justified.