Woolwich: Mortgage holders' confidence drops

Consumer confidence in the housing market dropped for the fourth consecutive month in September, figures from the Woolwich have revealed.

The high street lender found that public confidence dipped by four per cent despite news that the recent trend of interest rate rises might have peaked.

The Woolwich consumer confidence index shows that just over half (52 per cent) of homeowners believe their property will continue to increase in value compared to 56 per cent in August and 62 per cent in July.

"This month sees confidence at its lowest level for 16 months," Andy Gray, head of mortgages at The Woolwich, said. "The fall in confidence is largely due to rising interest rates and speculation surrounding the sustainability of house price inflation.

"We expect confidence to continue to soften as interest rates are predicted to rise once more next month and believe house price inflation will slow further by the end of 2005."

Confidence fell the most in the North West, by nine per cent to 49 per cent this month, making the North West and Wales the least confident regions.