The housing market experienced strong demand from buyers as last year drew to a close. According to the Office of National Statistics (ONS), house prices increased in November by 7.7% annually. There was also an increase from the previous month at 7%. House price inflation was reported at 8.3% for England, 1.3% for Wales, 4.6% for Northern Ireland, and 0.4% for Scotland.

Area growths were reported at 9.8% for London, 9.8% for the South East, and 10.2% for the East. London’s strong growth has for years inflated the average house price for the UK, excluding London and the South East the average house price increased 5.8% over the 12 months to November.

The average house price paid by first time buyers grew by 7.4% compared to November 2014.

Demand is expected to continue to be strong and according to property listers, home sellers are optimistic and are asking for more when putting their property on the market. This strong house price growth is closing many out of the market. It will continue to be harder for first time hopeful home buyers to climb onto the property ladder.

The surcharge associated with the stamp duty that will go into effect in April for landlords and second home buyers is expected to boost the demand for properties in the first quarter of the year.

Meanwhile, lenders still appear to be competitive for buyer’s attention and are offering very attractive low interest rates on both mortgages and remortgages for homeowners. Though there are many that still believe the Bank of England will be increasing the standard interest rate in 2016, it appears homeowners are still not rushing to grab a cheap deal as of yet. Their demand for remortgage lending has not reached the level of home buyers.