House prices dipped in May according to Halifax. This is line with the expectations of experts. The decrease of 0.1% in the average house price followed a boost of 1.6% in April. The annual growth for three months of data, reached the highest level for the year at 8.6%. The three months to April had shown an increase of 8.5%.

Demand is growing in the housing market and with supply low, the house prices are due to increase in the following months and perhaps throughout the summer and then throughout the autumn.

Consumer confidence is high with deflation giving them more buying power. In addition, borrowing is still cheap as lenders have yet to emerge from their competitive environment in which they are operating. Hopeful home buyers and remortgaging homeowners are finding offers that are truly attractive and capable of giving them substantial savings.

The average house price according to Halifax is now £196,067, which is up by £12,619 from last year.

For homeowners, the rising house prices not only offer a great opportunity to sell and move home, but it also offers for those staying put the opportunity to release cash from their equity. Cash release remortgages have been in higher demand as homeowners seek to make home improvements, pay off debt, pay for a holiday, pad their emergency fund, or make high price purchases. With cheap interest rates available and the cash equity release a possibility, homeowners are showing more demand in general for a remortgage deal. This is also in line with the expectations from experts in the lending industry.