Remortgage and mortgage lending are still in lower demand than expected. Interest rates offered by lenders are at bottom levels offering substantial savings for borrowers as well as security against rising interest rates that are set to increase later this year. There is also news that could offer a boost to the housing market.

Buyers have been walking away from the housing market due to rising prices. Even in the midst of a forecasted slump, prices remained on an upward curve or held steady in areas within the UK and Wales. Data from Halifax reveals that the market fell in line with the expectations of experts with house prices declining slightly in February. This is often the news that will get the attention of buyers and bring them back into the market, especially first time buyers.

According the house price index from Halifax, the average house price declined by 0.3% in February. This followed a surprising increase in January of 1.9%. Overall for the three months ending in February there was an increase of 2.6%. The average house price is now £192,372 in England and Wales.

Martin Ellis, housing economist at the Halifax, said, “The supply of both new and secondhand homes available for sale remains low; another factor that is likely to be supporting house prices. Supply remains tight despite housebuilding in England increasing for the second consecutive year in 2014 and a recent rise in the number of properties coming on to the market.”

House prices on the average have increased in the past year by £12,000. The coming year is expected to offer a 3% to 5% increase.