The UK housing market is facing an increasingly alarming issue of shortage of housing for those looking to gain access to the property ladder. As house prices continue on a torrid pace and increase at every turn, more and more people are finding it difficult if not impossible to join the property ladder anytime soon. Many close to the housing market have noted the shortage of houses available and suggested the quickest way to solve the problem is open the floodgates to more building. Whilst some are now suggesting the simple solution of more houses will not solve the problem.

Bob Pannell of the Council of Mortgage Lenders recently made remarks in regard to the UK housing issue. He noted how the current market is behaving sluggishly and that sales of houses currently are sitting at levels not seen since the mid-1990s.

Even though the current housing market is being referred to as “sluggish”, the CML is expecting at least 1.2 million housing transactions.

According to Pannell, there are still many factors negatively affecting the amount of activity which should be taking place right now. Those factors include a possible hangover from the credit crunch, senior citizens living in their homes for longer periods of time, and property prices outpacing earnings in many instances.

The housing market is seeing quite a bit of activity in remortgages. After a slow start to the spring, remortgages have taken off. Since the Bank of England announcement which made it clear the base rate would be increasing, house owners have been hurrying to obtain a fixed rate deal.