Christian Jaccarini, an economist at CEBR, said: “November saw consumer confidence damaged by a range of factors. The first interest rate hike in over a decade triggered fears that higher borrowing costs will compound the inflation-induced squeeze on household incomes.”

 

The Bank of England‘s interest rate hike at the start of November has also thrown renewed focus on the prospects for house prices, with fears from homeowners that marginally more expensive borrowing could dampen demand and consequently lower their house prices.

 

The index score for house values over the past month fell to its lowest level since July 2013, while home owners’ expectations for house values over the next 12 months are the weakest since July 2016.

 

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