House Prices and Consumer Confidence

11th October 2024

• Despite the September fall in consumer confidence, levels remain well above the lows of 2022. This recent faltering is likely short-term, due to concerns over the Budget.
• There is a strong historic relationship between consumer confidence and house prices.The fall in confidence might well limit the interest rate boost to prices over the next month or two and sellers should remain realistic on pricing.
• However, the government’s commitment to economic growth and its belief in the housing market as an engine of growth, is reassuring. House prices have often proved more resilient than consumer confidence trends might suggest.

Source: Dataloft by PriceHubble, GfK, Nationwide House Prices