House price confidence continues to fall, according to a new report from Halifax.

The mortgage lender said that optimism in the housing market has dropped to its lowest point since January 2015, and has followed a downward trend since a high point in May 2015. The change in sentiment comes as consumers feel increasingly uncertain about the wider economy.

Despite this downward trend, the majority of people (65%) still think average UK property prices will be higher rather than lower 12 months from now. However, the proportion who are unsure of the direction that house prices will go has risen six points, the first time it has hit double figures (13%) since spring 2013, suggesting there is growing uncertainty around the property market.

Martin Ellis, Halifax housing economist, said: “We are starting to see growing pessimism amongst consumers in the general economic outlook for Britain.

“However, the ongoing acute supply/demand imbalance in the property market continues, which together with continuing low interest rates and a healthy labour market, indicate that house prices are likely to continue to grow in the coming months.

“As a result, the gap between house price optimism and economic confidence is at its widest in five years, but both are tracking downwards.”