Housing market confidence may not be dented despite a 3 per cent jump in housing market confidence to 59 per cent in January from 56 per cent in December according to the latest monthly 'consumer confidence balance' research from Woolwich.
Woolwich says historical evidence points to interest rate rises of circa one per cent being needed before consumer confidence is dented.
Barclays and Woolwich head of mortgages Andy Gray says: “Interest rate rises are clearly going to take some time to start denting consumers confidence. However, we do expect confidence to soften over the next few months if the predicted base rate rises in May and August happen. In addition other factors such as the inability of earnings to chase house prices much higher in some areas, is likely to act as a brake on the property market and house price inflation.”