Previously if would be home buyers were playing wait and see then it was due to the possibility that the base interest rate might fall even farther than the current 0.5 per cent level. Then it became a wait to see if lenders might come up with more attractive mortgage deals such as offering free legal work and or applications with no fees. Those games have appeared to have ended and now the wait and see game is in play over lower house prices.

House prices have fallen over the last months and economists are expecting the trend to continue at least through early 2011. In the face of house prices falling even further many buyers have chosen to wait a bit longer before shopping or making an offer to buy purely to see if prices will become more favorable. Just a few percentage points lower on price and the buyer is saving thousands of pounds not only in a purchase price but future interest costs.

Also, many buyers are realizing that should prices decline more they could possibly get into a much larger property than they could have just one year ago. In addition, lenders are putting more competitive deals on the market for new home buyers. New products are being developed to help first time buyers as well.

Constrained lending and high deposits have locked many out of the housing market. Lenders and those in the housing market are desperate to bring in not only more buyers but especially first time buyers. So while it will take good credit history and a large deposit to secure a mortgage loan, the lower the price the lower the deposit, the better the property afforded, and the better deal to be found from lenders. The new wait and see game appears to be built around house prices for now and probably will be through the first half of 2011.