Extreme house price growth during the last few years has placed the UK housing market in a much more favourable position than it has been with in the last few decades. Those who are moving home are enjoying exponential growth and therefore much higher selling prices when they choose to put their homes on the market. That growth appears to be receding a bit and could be at a much different level within months, according to recently released data.

House prices soared by more than 10% this year and hit a ceiling this autumn, according to data from the Office for Budget Responsibility. A change to the stamp duty could send house prices increasing once again, but so far those fears are not applicable.

The OBR also mentioned data in regard to house price increases taking place in the coming months. The office estimates a slowing down of increases to house prices to almost 5% by next summer and to 3% per year by the end of the decade.

The forecast for house sales during the autumn period also proved to be inaccurate. More than 30,000 fewer house sales actually took place. The forecast number of house sales within the autumn time period was slightly less than 340,000. The difference has been attributed to new tighter guidelines issued by the Bank of England for mortgage lenders.

Osborne commented on a possible housing bubble forming and the ramifications associated with it, saying: “The Bank of England now has the weapons it can deploy if it sees there is a problem emerging.

“But this is something the Bank of England and the Treasury and myself have got to remain, of course, very vigilant on.”