The latest Halifax Housing Market Confidence Tracker has revealed that house price optimism has fallen 14 points from April 2017 (44) to October (30).
Overall, the index has fallen 38 points from the 68 points recorded in May 2015.
Half (50%) of respondents expect house prices to rise over the next year, the lowest level since April 2013 (45%), while one in five (20%) think house prices will fall, the highest figure since October 2012.
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Russell Galley, managing director of Halifax Community Bank, said: “Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market.
“Even with a potential base rate increase on the horizon, it’s significant that buyers’ concerns continue to be centred on raising deposits and job security and, as such, we do not anticipate that an increase in base rate will have a significant effect on the demand for properties.”
When asked what was the greatest barrier to home ownership, 61% of respondents said raising a deposit, followed by 42% who said job security.
Just 15% claimed that an impending base rate rise would be a significant barrier.
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