Recent Hometrack data supports the fact the UK housing market is possibly cooling off.  House prices in July grew at their slowest rate since February of 2013.  The 0.1% increase in the month of July is a noticeable change from the 0.3% increase in house prices which took place in the month of June.  The past several months of the year have proven to be quite successful for the housing market as prices have increased more than 10% in little more than a half a year.

Many considering the option of house purchase are now sitting on the sidelines due to the latest news from the Bank of England.  The Central Bank has discussed the possibility of raising interest rates with a more serious tone as of late.

Richard Donnell with Hometrack, commented on the latest housing market data, saying: "The lead indicators in the survey have pointed to a slowdown in the rate of growth for the last two months, in part due to warnings from the Bank of England and others of a possible house price bubble."

Donnell added: "There’s a growing element of caution from buyers about the market outlook as the prospect of future interest rate rises looms, and the new tougher mortgage market checks implemented as part of the Mortgage Market Review (MMR) impact on demand."

Although tighter lending rules are dictating a new style of lending, those seeking a remortgage are still in luck.  Higher interest rates will not take place for potentially a few months and there are several attractive deals on the table with big and small lenders.