House prices within the UK housing market have been on a roller coaster ride since the beginning of last year.  That ride is apparently continuing as house prices have taken an unexpected turn south during the month of January.  This data, according to Nationwide, indicated a decline of 0.2% during the month which matches the slide which occurred in December.  The remortgage market has remained flat, and the month of January was no exception.

Robert Gardner, Nationwide’s chief economist, commented on the current conditions within the housing market, saying: "The weakness in buyer demand is partly a reaction to the uncertain outlook for the economy, especially the labour market. But affordability is also part of the explanation - in particular, finding a sufficient deposit.”

Requirements for home purchase have changed drastically in the last few years, especially in regard to the amount of deposit being put down on a house.  According to Nationwide, the average first time buyer is putting down a significant 20% deposit down on a house for purchase.  This is double the 10% which was being applied to deposits four years ago. 

The percentage amount of take home pay which is now being applied to the monthly mortgage payment is 31.  In 2008, the amount of monthly mortgage accounted for almost 50% of take home income.

Remortgages are expected to pick up speed and be rolling along at a much higher pace by the end of spring.  A solution to the current crisis in the Eurozone is expected to ignite the entire UK housing market, as well as other parts of the economy.