NORTH west consumers' confidence in the housing market dropped by six per cent in August from 64 per cent to 58 per cent.

It was the third month in a row that confidence in the housing market had fallen.

This confirms the Woolwich's earlier prediction that confidence would continue its downward trend, demonstrating that recent interest rate rises have had a significant impact on the housing market.

Across the UK as a whole, the Woolwich index shows that 56 per cent of homeowners believe their property will continue to increase in value, compared to 62 per cent in July and 65 per cent in June.

Barclays and The Woolwich anticipate one further 0.25 per cent interest rate rise by the end of this year, taking interest rates to five per cent and advise consumers to review their finances in light of future increases.