UK house prices are currently in a slowdown period of growth, but the same cannot be said of property within the capital city of London. House prices in the city are expected to increase by almost 30% from now until the year 2019, according to the latest research. Demand for property in the city of London continues to outpace the volume of supply. This is placing upward pressure on the properties which are available for purchase.

As house prices increase in London, remortgage activity is matching the rise as house owners attempt to beat the certain increase in base rate estimated to take place in the coming months. The latest meeting of the Bank of England’s Monetary Policy Committee revealed little regarding when a rise in base rate could take place. The vote for an increase remained the same as in months past, 8-1.

House building is a primary concern to help balance the UK housing market. Demand will likely remain high for places such as the capital city of London. A supply in homes for purchase is the only way for a factor to push back against the upward pressure on house prices. House building is key.

Plans for housing development are constantly being discussed. Jennet Siebrits of the CBRE discussed the latest facts regarding building, saying: "Developers will soon be able to deliver schemes that are 100 per cent for private sale, supplying affordable starter homes rather than incorporating an affordable rental element."

Siebrits added: "This will be a boon to housebuilders and should act as an incentive, bringing developments forward and thus more homes to market.

"These reforms are a positive move and show the government is taking action to address the UK’s chronic undersupply of housing in the private sale sector. However, more action needs to be taken to address other types of tenure, and ensure long term availability of affordable homes for sale or to rent."