Nearly a quarter fear property prices will fall following vote to quit EU

Consumer confidence in UK house price growth has tumbled following the decision to leave the EU - with nearly one in four people now expecting property values where they live to fall in the coming year, a survey has found.

The ING International Survey on Homes and Mortgages also found that confidence had already been sliding before the Brexit vote.

It carried out a survey of 1,000 people in the weeks leading up to June's referendum vote, which found 57% expected house prices to rise in the next 12 months where they live and 6% predicted prices would fall.

ING said another survey of 1,000 people carried out in August, after the vote had taken place, found a shift in expectations.

In the second survey, less than half (46%) of people expected house prices to rise in the next 12 months - the lowest proportion since the survey was first conducted in 2012. Nearly one in four (22%) predicted values would fall.

Previous research carried out for ING in the summer of 2015 found house price confidence had been much higher, with seven in 10 (70%) people at that time predicting house price increases where they lived in the year ahead.

ING's report pointed out that the UK has already seen some strong house price growth in recent years - and more consumers "may now believe this pattern is at an end".

More than one in four (26%) people surveyed in the run-up to the referendum believed low interest rates, which have made mortgage costs cheaper, had already pushed up house prices where they live. The Bank of England base rate has since been cut from 0.5% to 0.25%, making many borrower's mortgage payments cheaper still.

Figures released by Nationwide Building Society this week have shown that despite signs that housing market activity has slowed in recent months, UK property values continued to push upwards in August, reaching a new record high of £206,145 on average.

Nationwide said a tight supply of homes available for sale is helping to keep an upward pressure on prices.

As well as carrying out surveys of people in the UK, ING also asked people in 14 other countries in June about their house price expectations.

Across the European countries surveyed in June, 56% of consumers predicted house prices would increase where they live in the next 12 months. This figure was unchanged from the European average a year earlier.

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