Although house prices are projected to grow 2% during the course of this year, prices fell during the month of May. Prices declined 0.1% bringing the average UK house price down to £210,495. Fast forward to August as house price growth slowed down again from 2.9% to 2.1% month on month. This raises the obvious question, what direction are house prices headed in the next few months? Housing experts see potential growth, although pressure to afford daily living expenses is remaining constant.

Nationwide chief economist Robert Gardner commented on the latest data, saying: "Wages have been failing to keep up with the cost of living in recent months and consumer sentiment has weakened.”

Gardner continued: "In some respects, the slowdown in the housing market is surprising, given the ongoing strength of the labour market."

Unemployment has now fallen to 4.4% which is a level not seen in forty years. This is due to the 125,000 jobs which were created in the three months to June.

Gardner added: "Ultimately, housing market developments will depend on wider economic performance. The UK economy slowed noticeably in the first half of the year, and there has been little to suggest a significant rebound in the months ahead.”

The housing market has slowed, but not the demand for remortgage.  Many households are taking advantage of attractive deals still offered by high profile lenders. Despite remortgage interest rates increasing slightly, the mortgage lending tool is still being leaned on and families are finding heavy financial burden lifting from their tired shoulders.