House prices are expected to continue to rise throughout the first quarter of the year. Supply is extremely low and demand remains high. Experts believe that the continued low interest rates are helping to motivate buyers. In some cases, the continued pandemic is pushing buyers as the desire for space remains a top priority. The possibility of rising rates could also be a motivator as hopeful home buyers take action now that the cost of borrowing is becoming more expensive than it was only weeks ago. However, it could be the simple fact that rental costs are rising.

Homeowners have picked up the pace of remortgaging. It’s a good strategy as getting a new deal could save them hundreds of pounds per month. Finding a lower interest rate could save money, but grabbing a lower fixed rate interest rate locks in the savings for the term of the deal and protects from rising interest rates later on. Because the Bank of England could possibly raise the rates soon, and possibly several times this year, seeking out a remortgage could be a good strategy for all homeowners.

Homeowners have been able to take advantage of low interest rate offers from remortgage lenders and gain a variety of benefits. Some simply sought out a lower rate to save money. Other homeowners not only remortgaged to save money, but also secured a fixed rate deal to secure their low rate throughout the term of their deal rather than face rising rates. There were also some homeowners that turned their built up equity into cash along with their remortgage low interest rate deal.

The UK housing prices grew by a large and unexpected rate in 2021 and while many of the conditions that put the growth into play are still in place, the same rate of growth is not expected for 2022. The pace at which the average house price grew in 2001 was the fastest since 2007 and the largest annual increase since 2003. Halifax reported in their latest data the average house price hit £276,091 at the close of the year in December. The growth almost reached double digits but edged out at 9.8% last year.

The big news last year was the housing market and the number of home buyers seeking their pandemic lifestyle dream home. Despite the pandemic taking grip on the world and the UK experiencing lockdowns, one of the largest consumer purchases was not put on hold. Home buyers flocked to the market and not only kept it afloat, but supported businesses associated with moving and setting up a new home. This coming year is not expected to be as robust as last, but that doesn’t mean that borrowing will falter because homeowners are expected to remortgage and in large numbers.

UK first time home buyers took advantage of the opportunities available to them in 2021 from low historic level interest rates to the stamp duty holiday and boosted sales to first time homeowners to the highest level in almost twenty years. According to data released by the Yorkshire Building Society, the number of sales to first time home buyers increased by 35% in the past year. Not since 2002 has there been such a strong showing in the housing market of first time buyers, which is estimated to be 408,300 for 2021.