In November, according to Rightmove, there was the smallest drop in new seller asking prices during the normal seasonal slowdown since 2011 by a minus 1.3%. A survey of 23,140 homeowners in July and August revealed that 44% expect their financial situation to remain steady, while 41% expect it to be better. This is despite the fact that experts are warning of higher interest rates in the next year.

Homeowners do believe by majority (70%) that house prices will be higher in the next year. This means they do not expect a slowing down or decline in the house prices despite an average increase of over 6% in the past year.

According to Rightmove’s director Miles Shipside the average seasonal drop is 1.9% over the past five years. Over the past eight years home sellers have dropped their asking price this time of year to be more competitive and gain the attention of buyers.

Mr. Shipside said, “Buoyant market conditions and a confident outlook for 2016 mean that the reduction, while no-doubt welcome to hard-pressed buyers, is the most Scrooge-like since 2011. It’s likely to be a short-lived respite as the combination of high confidence and low interest rates is a recipe for higher prices next year.”

He stated that homeowners have been warned for a while now that interest rates could be increased in the next year.

He said, “Indeed, competitiveness among lenders means some of the possible effects of rate rises for both home-owners and movers will be softened, and buyers’ ability to afford higher interest rates is already built into the current tighter lending criteria.

“Many recent buyers will also be shielded as they are locked into fixed rates, so the shock of the first rise for over six years will be a delayed one.”

Those homeowners that have moved off of their current mortgage rate and are now on their lenders risky standard variable rate (SVR) and those close to having their current deal end are encouraged to seek out a remortgage and take advantage of the current low rate fixed remortgages on the market.