More than one in three house-hunters think that house prices will fall in the next 12 months, according to a new survey.

The survey, which was carried out before last Thursday’s Bank of England decision to hold the interest rate steady this month, maybe shows a certain pessimism about the future of the housing market, as well as a natural hope on the part of first-time buyers.

Assertahome.com's June survey shows that although 62% of househunters still expect the cost of property to continue rising over the coming 12 months, the proportion has been steadily declining from 86% in January.

Pessimism, says assertahome, is highest in the South East, South West and East Anglia, where house prices have risen the furthest over the past five years. In contrast, those living in Yorkshire, the North West and Scotland are much more confident that prices will keep going up.

Managing director, Jim Buckle commented: "Even before June's interest rate increase, house hunters had begun to reduce their expectations for the housing market."

"The Bank of England's June rate rise and Mervyn King's subsequent tough talking on house prices shocked consumers."

"With interest rates on hold at the latest MPC meeting, we expect sentiment to steady and confidence to recover modestly from this low level. However, we strongly believe further aggressive rate rises risk destabilising the whole housing market."