Confidence is having a bigger effect on the housing market than the cost of money, according to one estate agent.

Tim Barton, a partner at Dreweatt Neate, a Hampshire estate agency, claims cutting rates will have no affect on the housing market, but government moves to restore confidence in the market will go some way toward helping, reports the Guardian.

Mr Barton told the news provider: "There are still people looking - not as many as usual for this time of year - but not many are willing to sign on the dotted line and buy somewhere."

He added people are refusing to buy because they expect prices to continue falling into next year.

First-time buyer Matt Hussey told the paper dropping prices have been great for him and his partner, but getting a mortgage has become more difficult.

Meanwhile, the latest survey from leading lender Halifax shows house prices have fallen by 13.4 per cent since last year.

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