Issues within the UK housing market are making it difficult not to estimate house prices increasing around 5% next year, according to Halifax. Demand for housing continues its upward trend, whilst supply of available housing for purchase is still at a record low. The increase to house prices is more than likely going to continue for months as interest rates could stay at this level for some time.

Many looking to sell their house are seeing these fundamentals of the market as reason enough to wait for a better time to sell. A more appropriate time will be when there are more houses on the market.

Martin Ellis of Halifax commented on the current climate within the market, saying: “As a result, the substantial imbalance between supply and demand is likely to persist, maintaining upward pressure on house prices in 2016.”

Ellis added: “On average, UK house prices look expensive compared to incomes but valuations are supported by the low levels of property for sale, low levels of housebuilding, and exceptionally low interest rates.”

Ellis continued: “With house prices continuing to increase more quickly than average earnings, it is increasingly difficult to get on the housing ladder. This ongoing development, combined with the growing prospect of an interest rate rise, should start to put the brakes on house price growth during the course of 2016.”

The remortgage market is continuing its torrid pace through winter, according to many close to the housing market. Attractive deals are still being offered by lenders who are taking note of the possibility of the base rate remaining at its current level for several months.