Homeowners have a lot to be happy about with the housing and lending markets.  At the close of the year, despite a slowing down of demand for property, it has been reported that homeowners will see their property values continue to increase in 2015.  The housing market is due to still be attractive to both families and investors in all areas and not just London.  Also, for those homeowners considering a remortgage, the lending market is expected to keep their currently cheap remortgage deals on the table in the beginning of next year.

Lending has remained in low demand and that has pushed lenders to be competitive for the attention of borrowers.  The result is low interest rate deals available for homeowners.  Some remortgage interest rates have been lower in the last few weeks than in more than 3 years past.

Halifax recently announced that they expect the average house price in the UK to rise 3% to 5% in 2015.  They also repeated the forecast of possible standard base interest rate hikes next year by the Bank of England.  The UK economy is on track to gain strength and as the inflation level drops further, more members of the Bank’s Monetary Policy Committee will be considering a rate increase.

Martin Ellis, the Halifax’s housing economist, said, “A further moderation in house price growth is likely in 2015 as supply and demand become increasingly better balanced.

“Overall, house prices nationally are expected to increase in a range of 3-5% in 2015.

“The prospect of higher interest rates at some point in the year and reduced affordability are expected to be key factors curbing housing demand. A looming general election could also raise uncertainty, resulting in a lull in activity in the early months of the year.”

He added, “Global economic worries could also reduce demand and activity at the top end of the London market in 2015.”