Thanks to new incentive plans by the UK government during the year 2012, it’s possible the toughest times for the housing market are in the rear view mirror.  The government revealed two plans which have had a major impact on the housing landscape and both of them have helped first time buyers reach that first step on the property ladder.  The Funding for Lending scheme and the NewBuy scheme have taken incentives to a new level which has stirred the pot of activity and helped in creating more house sales.  The fact that interest rates have remained quite low has also had a positive effect.

These incentive plans have been quite motivating for lenders as they continue to sharpen their pencils in an effort to reach out in any way to borrowers.

Head of mortgages with the Post Office, John Wilcox, commented on the impact the government schemes have had on consumer confidence, saying: “The changing  lending landscape, housing market movement and the availability of more affordable mortgages has perhaps cajoled many in to feeling more confident about the future of the housing market at as whole”.

Fundamental signs of progress are emerging from within the UK housing market.  One which goes undenied is the increase in the average cost of a house.  According to the Office of National Statistics, 2012 saw an increase in the average cost of a UK house.  The 3% rise brought the overall cost to 233,000 pounds.

Remortgages continue to lack in numbers, but many within the housing market believe that a corresponding increase in activity will occur as a rise in temperature takes place.