The UK housing market is still struggling, and is so far from recovery it seems that our government is now insisting there should be limits to housing prices. Others in government are calling for new policies in major banks so that funds are funneled less to bonus cash payouts, and more toward lending. Change is inevitable it seems, to bring the housing market into an area of stabilization and then recovery.

Currently, the pool of potential home buyers is low due to customer confidence being shaky, limits to lending, and deposits that are out of reach of many. In some scenarios, analysts have determined that deposits are equaling entire annual incomes of young families. Without those coming into the property ladder seeking starter homes, everyone on the property ladder is held stagnant. If there are no buyers for current homeowners’ properties, then they can purchase upgrades.

With the number of houses coming into the market from new builds, those seeking to upgrade or let go of properties, and home seizures due to repossession, the supply has outgrown demand. This has led to prices declining.

When prices are low, one would think the properties to be more affordable, but many believe the pricing is still above what the market can bear and needs correcting or further pricing decline. During the housing boom the buyers outnumbered the supply of homes and pushed pricing way too high some analysts have declared, and they need to fall more.

One area that has seen growth is the buy to let market. For those that can obtain lending, or have equity available, they can be had through remortgaging. The demand for rentals is enough to make the investment. Some are even using remortgage not to buy, but to renovate their current property to lease, to bring in income, or to provide for retirement savings.

The market isn’t in recovery according to economists, and certainly needs attention and innovation. It is inspiring to see the passion for home ownership again becoming an honorable pursuit, and no doubt the UK people will not slowdown in that one time-honored effort, till it is again within grasp.