House price index to have 'negative effect' on confidence

A monthly house price index released this month could have a negative effect on housing market confidence, according to one mortgage specialist.

This month's monthly index, released by FindaProperty.com, revealed that asking prices for homes are down by 0.5 per cent, the first drop seen since March this year.

However, it is still too early to tell if this will mean bad news for the property market, according MyMortgageDirect.

Catherine Hearnden, the firm's director, said the figures were possibly just a "blip" and that it would be difficult to say how badly the market was affected until more figures were available.

Commenting on the difficulties faced by people looking to purchase homes, Ms Hearnden said there is a limit to "how much help you can give people".

"If you go back long enough, people used to have to save up a lot of money to be able to buy a house," she said.

"I think we have had it very easy and we'll just have to readjust to the fact that saving is up to borrowers."

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