Since April the Woolwich Consumer Confidence Index has not moved as homeowners wait for something to shift the market, and the latest July figures show the same 49 per cent of homeowners expect prices to rise in value over the next 12 months, compared to 62 per cent this time last year.
These latest figures indicate that the housing market has been waiting for an interest rate cut but whether a quarter point cut will change the market is very much open to debate.
Andy Gray, head of mortgages at Woolwich said: "It’s the first cut in the base rate for two years, so this is our best chance to shake the housing market from its lethargy. Those with existing mortgages will be able to loosen their belts a little, but whether it is enough to entice more buyers to the market is open to question. We will look with interest to see how buyers respond."
Other highlights:
* Homeowners in Scotland, North East and North West are the most confident about house prices increasing (61 per cent, 52 per cent and 51 per cent respectively).
* The least confident region is the East with just 43 per cent of homeowners expecting prices to rise and nine per cent forecasting decreasing house prices. They were closely followed by the South East where 44 per cent predict prices to rise.
* The most optimistic homeowners are in their fifties with 55 per cent of them predicting prices will rise in the next twelve months, compared to 53 per cent last month.
