Consumers seem more optimistic about the housing market, a monthly survey shows. Significantly fewer respondents expect house prices to fall: 9% compared to 19% at the start of the year.

The consumers’ house price forecast (which looks at the next six months) has risen to 3.1% from 2.9% in October – up from 1.2% in January. Consumers’ greater confidence is likely to reflect a belief that a soft landing has been achieved.

The survey, carried out for Nationwide, also shows the overall consumer confidence index rose 9 points last month. The rise was the largest monthly change since the index began and followed three successive monthly falls which saw the index fall to its lowest ever level in October. The recovery in confidence brings it close to the average level, similar to the levels seen in the summer.

At 101, the index is close to its long term average level of 102

Stuart Bernau, Nationwide’s executive director, said: "After three consecutive monthly falls in confidence, consumers appear to be feeling some festive cheer as we approach Christmas. The main index recovered from the previous month’s low, back to the longer term average."

"It appears that recent negative sentiment, caused by recent higher petrol prices, fears over house prices and other factors, has dissipated."

"More upbeat sentiment may stem from more positive news on a number of fronts and may also reflect greater optimism in the run up to Christmas. In addition to feeling more positive about the present, there has been an upsurge in confidence about the future indicating that consumers feel that better times lie ahead for jobs, the economy and their incomes."

Talk of gas price hikes seems to have had little impact on confidence. The upturn in house prices in October may also have boosted confidence slightly although this probably reflects increasing certainty that the market has achieved a soft landing.