There is concern by many that the UK housing market could be on the brink of a housing bubble due to the increase in housing prices over the last few years. Although this is one of the dominant characteristics in the creation of a bubble situation, the current state of the housing market is quite unbubble like, in fact. House price increase has been trending for months, but now are starting to stabilise, according to data from the Office for National Statistics. The average price is now only £1,000 off from the average from the middle of last year.

Simon Rubinsohn, chief economist with the Royal Institution of Chartered Surveyors, commented on the potential mindset which can be created when talk of the trend of higher house prices begins, saying: “When we talk about house prices going down, we have to be careful about what we are saying about the trend.

“If you look at the level at where prices are at, the UK housing market is actually stabilising.”

Rubinsohn continued: “Those headline numbers can mask what is happening across many regions. I would be reluctant to report an overall decline in place as there are certain places that show that this is not the case. It’s not just all about London. Our longer term indicators show a stable and positive picture for house prices.”

House prices are but one of many factors taken into consideration when talk of a housing bubble comes to the surface. Mortgage and remortgage lending activity are also examined. These two areas, along with employment and consumer confidence, are both prime indicators of a housing bubble or not.