House buyers have been pulling out of the market over the past few months sending a chill over the hot housing market that had been growing through summer and into autumn.  The worry that a housing market bubble was growing was put to rest as reports showed that the market was cooling off.  Credit for the lack of demand from buyers was blamed on higher prices and the lack of ability for buyers to gain approval for the higher priced properties.  The lack of low interest rate mortgages was not the problem however as there were plenty of deals with very attractive cheap interest rates available to attract buyers.

There are now signs that perhaps buyers will return the housing market despite the holiday months and possible inclement weather as winter rolls in to the UK.  Sellers are becoming more aggressive and marking down their asking prices.  This could make buyers, especially first time buyers, take notice and decide to take a step onto the property ladder.  A boost to the housing market would be welcomed in the final quarter of the year.

According to Rightmove, an online property lister, asking prices fell 1.7% in mid-November.  The average asking price is now £267,127 and that is 8.5% higher than the same time last year. 

Miles Shipside, from Rightmove, said “Selling is more difficult than it was earlier in the year, though the mini-boom experienced by much of the country has hit the pause rather than the stop button.”

Lenders continue to be competitive to attract borrowers.  Both mortgages and remortgages have been at very low levels and deep savings could be found with fixed rate deals as the Bank of England is expected to increase the standard base interest rate in early 2015.  After the first increase, there are expected to be several more steady and slow increases in the next few years as the economy continues on a path of recovery.