Consumer confidence in the housing market has dropped for the third consecutive month, from 59% to 57%, throughout the UK, according to the latest Woolwich Mortgage Index.
This falling confidence is combined with a reduction in gross mortgage lending which saw lending decrease by 4% last month. Britons’ confidence in the housing market has fallen by more than 7% since May 2002 and the lender believes this is starting to reflect in softening lending levels.
Andy Gray, head of lending at Woolwich, said: ‘We are seeing the effects of the downturn in consumer confidence over the last four months starting to impact on lending levels. However, the market remains strong with both confidence and lending levels up year on year.’
In the first five months of the year average consumer confidence rose by 15%. However, the 7% reduction since May is eroding this gain which now stands at 8%.
Confidence is strongest in the South West yet, even here, confidence levels have dropped 6% in the last month from 72% to 66.