The latest figures regarding the UK housing market point in one direction, according to many experts. That direction is to a period of softer times. Housing prices in the month of January grew at a slower pace than they have the previous twelve months. This has led many to believe that a period of a softer market is upon us. Growth of prices fell from 4.5% in the month of December to 4.3% in the month of January.

As housing prices came to a barrier in the road, remortgage activity enjoyed vast success during the month of December. Many households are seeing a much lower monthly mortgage payment which began last month. The remortgage lending tool has now been realised by thousands more who are seeing the benefits for the first time.

The reasons for high remortgage applications are simple and fundamental – low interest rates. The cause for a possible softening in the market has been identified as inflation squeezing the households of those looking to move home.

Robert Gardner of Nationwide commented on the latest figures regarding the UK housing market, saying: “The outlook for the housing market remains clouded, reflecting the uncertainty surrounding economic prospects more broadly.

“On the one hand, there are grounds for optimism. The economy has remained far stronger than expected in the wake of the Brexit vote. However, there are tentative signs that conditions may be about to soften.”

Gardner added: “The economy is likely to slow through 2017 as the squeeze on household budgets intensifies and heightened uncertainty weighs on business investment and hiring.”