The weakening housing market and the increasing likelihood of recession is damaging consumer confidence, according to Nationwide.

Fionnuala Earley, Nationwide''s chief economist, said reductions in fixed-rate mortgages are good news, but further falls in house prices and the increasing cost of living are contributing to a loss in confidence.

She added: "The continuing downward trend in consumer confidence is not surprising given the recent batch of poor economic data.

"Lower fixed mortgage rates offer some good news, but a cut in the bank base rate is still unlikely this summer."

Consumer confidence is 18 per cent lower than it was last month and nearly half what it was this time last year.

And according to Nationwide''s House Price Expectations index, growth in the housing market over the next six months is expected to drop by 4.8 per cent.

But the Centre for Economic and Business Research said property prices could rise by as much as 30 per cent between 2010 and 2012.

Carry out a house price search.