More people expecting house price falls as Brexit uncertainty knocks confidence

A third of people across Britain expect house prices to fall over the next 12 months in signs that political wrangling has knocked confidence in the housing market further, according to building societies.

Some 33% of people surveyed for the Building Societies Association (BSA) predicted house prices will fall over the coming year, up from 24% when the same question was asked in June.

Just 23% believed house prices will rise, down from 31%.

The BSA said its latest Property Tracker Survey suggested discretionary home purchases at least may be on hold for now.

In the latest survey, 33% disagreed with the statement that it is a good time to buy a property, while only 22% agreed.

More than 2,000 people were surveyed between August 30 and September 2.

Raising a deposit is consistently seen as the the biggest barrier to home ownership in the quarterly survey, although concerns had reduced in the most recent research compared with June.

But lack of job security has increased as a concern when people were asked about barriers to home ownership.

Paul Broadhead, BSA head of mortgages and housing, said: “With the level of political uncertainty the country is experiencing, it is unsurprising that consumer confidence in the housing market, amongst other things, has taken a knock.

“In the coming weeks and months, as we find out what shape Brexit will take, we are hopeful that confidence and stability will begin to return.”