Potential buyers put their decisions to purchase on hold during the month of December as the UK housing market began to show cracks on the surface, according to data from the Royal Institution of Chartered Surveyors. In its latest monthly survey, the number of new property buyers actually increased as the shortage of available property for sale remained constant. This continues the unbalance of supply and demand which has existed in the market for months and appears quite likely to continue for months to come, according to those close to the market.

Remortgage is maintaining its high level of activity in the current month. Lenders remain aggressive seeking new clients for the beneficial mortgage option. Packages with low interest rates combined with low administration costs are still on the table. Some homeowners are finding a remortgage can save them hundreds and sometimes even thousands of pounds off the current cost of their monthly mortgage payment.

Although remortgage transactions are abundant, the market is now looking uphill in regard to housing sales and potential for house price growth.

Simon Rubinsohn, chief economist with Rics, commented on the current trends dominating the housing market and their impact, saying: “A familiar story relating to supply continues to drive both the sales and lettings markets impacting on activity, prices and rents.”

Rubinsohn continued: "The eagerly awaited housing white paper should help to create a more positive framework for new build delivery but with the best will in the world, it is going to take time before the resulting uplift in the development pipeline begins to impact on the opportunities for either homebuyers or tenants."