House price confidence plummets, finds Prudential

The confidence homeowners' in house prices has slumped as the nation speculates about a market crash, according to Prudential.

14:07 22 December 2004

The confidence homeowners' in house prices has slumped as the nation speculates about a market crash, according to Prudential.

The company's four-monthly Mood of the Nation Index revealed that only 30 per cent of homeowners expect the value of their home to increase over the next 12 months, compared with 61 per cent in March.

And the number of homeowners forecasting a fall in the value of their home over the coming year has almost trebled from six per cent in March to 17 per cent now.

This drop in confidence is consistent across all regions of the country.

Director of research, Angus Maciver, said: "There is undoubtedly a growing nervousness about the housing market.

"Some people, wisely I think, are starting to realise that they can reduce risk by having a spread of investments rather than tying all their money up in their house."