The housing market is expected to get a boost from first time buyers in the start of the year. Lenders are responding to the now low demand from borrowers by offering lower interest rates and better incentives along with their deals. In the hopes to gain the attention from a potential home buyer or remortgaging homeowner, some lenders have offered the lowest interest rates seen in years.

Most housing market experts have forecasted that the average house price will increase by 3-5% in the coming twelve months. This is due to strong demand from buyers and a continued low supply of adequate housing for the shopper.

Home purchases lower than £325,000 will be taxed less due to a stamp duty makeover that is due to save home buyers a considerable amount of money. There is a fear that what has been put into place to help hopeful home owners get into homes will instead push house prices upward. Home sellers may see the situation as an opportunity to push their asking price upward knowing the home buyer will be paying less in tax.

Despite the current low interest rates being offered from lenders, the new tax cuts for some buyers, and the cooling off of rising house prices, home buyers are still finding it hard to get onto the property ladder. They are having problems gathering adequate deposit levels. Many, according to a recent study, are relying on parents to help fund their deposit. However, there are deals out there with low deposit levels.

Shopping around is essential or hiring a broker that can assist in seeking out the best available deals, both for mortgages and remortgages. There are good deals out there and they won’t last forever. For those that want to save money and get what are probably the last of the cheap interest rates time is of the essence.