The percentage of people expecting home prices to increase within the next six months fell to 78 percent this month from 81 percent in April.
About 77 percent of people polled by zoopla.co.uk said mortgage availability in the UK had not improved over the past three months, while 27 percent said it is now difficult to acquire a mortgage compared to the previous month. Around 34 percent of the respondents also said that getting a home loan was the biggest hindrance from purchasing a property.
The survey also showed that 25 percent of consumers believed that increasing interest rates will largely affect the housing market, while another 21 percent feared that job cuts in the public sector would have a negative impact on the property market condition.
Scotland seemed to be a little more optimistic, with 85 percent of Scots saying they believe home prices will improve, compared to 71 percent in Wales and 79 percent in England. Nearly 67 percent of people in Northern Ireland said they expect the property market to pick up.
“Confidence amongst homeowners remains high for the time being, but the dip does signal a directional shift as concerns are building again around the outlook for the property market,” said Nicholas Leeming, commercial director of Zoopla.co.uk.
“The fear remains that the revival in the housing market will be derailed unless the banks make a concerted effort to increase lending. With job cuts looming in the public sector and interest rate hikes expected at some point, the new government has its work cut out for it to ensure that home ownership remains affordable and attainable for most people.”