The UK housing market continues to struggle as the New Year inches closer.  Many families are constrained in financial ways which is leading to a limited number of people able to afford new housing or even a remortgage.  Halifax economist Martin Ellis commented on what to expect for the coming months. 

Ellis said: "The outlook for the UK economy remains highly uncertain. Risks in the global economy remain significant and how these evolve will be key determinants of how activity in the UK progresses over the coming year.

"The US fiscal cliff – the $600bn of fiscal tightening scheduled for January 2013 – represents a key risk and uncertainty over whether Congress and the recently re-elected President can strike a deal remains high.

"The Eurozone continues to make slow progress towards a comprehensive solution to its economic problems, but considerable uncertainty remains over the outcome and therefore the prospects for the euro. As a result, the outlook for the UK economy and house prices remains more unclear than usual.

"Subdued economic growth, sustained high levels of unemployment and ongoing pressures on household finances will all continue to constrain housing demand. The fiscal tightening programme, combined with many families continuing to seek to reduce their debts, is likely to significantly curb households' ability, and willingness, to spend. Rising utility prices, in particular, threaten to keep inflation above the Government's 2% target - at around 2.5-3% next year.

"This will act as another headwind for households with average earnings growth again unlikely to match inflation in 2013. These factors will all restrict the demand for property.”

Although the outlook is not as strong as hoped for, many attractive remortgage products remain available for those who can qualify for them.  A remortgage specialist is able to help those who feel they have the potential.  For those who do the benefits are numerous.