In its housing market confidence tracker, which monitors public sentiment towards the UK housing market, it showed that 30% of people expect house prices to fall rather than rise over the next year, compared with 28% of respondents who forecast a price rise over the same period.
Nonetheless, the majority of respondents expect any change in house prices to be relatively modest with 57% expecting a move of between 5% and -5%.
More than a quarter think house prices will be unchanged in a year’s time.
Over half of those surveyed said it is a buyer’s market, compared to 13% who think, now is a good time to sell. Only 9% of people think that the next twelve months will be a good time to buy or sell, while 12% disagree.
In addition, 57% of those surveyed by Halifax cited concerns over job security and raising a deposit as the two main obstacles to buying a home. A quarter identified worries over household finances as a key barrier to house purchase.
Martin Ellis, housing economist at Halifax, said: “It is unsurprising that confidence in the housing market has been shaken a little over the last few months given the increasing uncertainty about the current economic environment, together with pressure on householders’ finances from weak earnings growth, higher inflation and tax rises.
“However, despite this deterioration in sentiment, record low interest rates continue to help to support the market. House prices nationally have changed little overall since the start of the year and we expect little change in both prices and activity over the next few months.”
Halifax’s research also showed that owner occupiers are more pessimistic about the prospects for the housing market than the public as a whole. Around 33% of existing homeowners think prices will be lower in 12 months time against 26% who disagree.
In the rental market, 66% of adults think private rents will rise over the next 12 months, compared to just 3% who believe that rents will fall.
The Nationwide house price index out today suggested prices rose 0.4% in October, but the housing market continues to flatline.
