Confidence in UK house prices has slipped to its lowest level in five years

 
Helen Cahill
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Confidence in tUK property has slipped to its lowest level in five years, according to data out today, and Londoners have the most miserable outlook on the market.

Halifax's house price optimism index dropped 14 points between April and October, a fall matching that recorded after the Brexit vote.

The index has fallen by 38 points since it peaked in May 2015, just before the General Election.

Read more: London among worst UK cities for house price growth

One in five people surveyed by Halifax expect house prices to fall over the next year.

And, when asked if next year would be a good time to buy or sell a house, London was the only area that had a negative outlook. The net balance of people thinking it was a good time to shop or sell in the capital was minus three and minus 17 respectively.

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 the base rate will have a significant effect on the demand for properties."

Rightmove found that house prices rose by 1.1 per cent in October. The average property price was up by £3,432 to £313,435 since September. However, the number of sales agreed fell by 5.9 per cent.

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