Mortgages and remortgage applications have been going up but not to the level that is needed in a healthy housing environment.  The housing market remains weak with little sign of improvement if in an area outside of London.  Even with declining house prices and low cost borrowing few would be homeowners can get approval or come up with the large deposits required for a house purchase.  There are few buyers, few homes being built, and a lower supply of homes coming onto the market.  According to the Halifax House Price Index prices had declined 2.3 per cent compared with last year.  It appears as the housing market will continue to struggle in months ahead.

Martin Ellis, Halifax housing economist, remarked on the current condition of the housing market saying, "House prices in quarter three were slightly higher than in quarter two. The 0.1pc increase between the two quarters was the first quarterly rise since quarter one 2010.

"The more volatile monthly figures showed a 0.5pc decline in prices in September.

"This continued the mixed monthly picture experienced so far this year with four rises, four falls and one no change since January. This mixed pattern is consistent with a market where prices are lacking genuine direction."

"Greater uncertainty about economic and personal financial circumstances, together with pressure on householders' finances from weak earnings growth, higher inflation and increases in taxes, are likely to be constraining housing demand.

"Despite these pressures, low interest rates and a rise in employment over the past year, have been supporting the market, resulting in broad stability in both prices and activity."