As a fresh new year begins, many questions about the housing market are yet to be answered.  Will the buy to let mortgage market stay on its current torrid pace into the first and second quarters of 2012?  Will first and second time home buyers continue to face uphill challenges when seeking mortgage financing?  Will the remortgage market be affected by the base rate staying at the same basement level rate into the New Year?  And, maybe the biggest question of all, will home prices keep falling?

The Royal Institution of Chartered Surveyors believe home prices will continue to marginally slide as the new calendar begins, which is good news for anyone still interested in moving home.  That is not good news for perpetual savers and remortgagers looking to build the equity amount within their homes.

RICS is estimating by year’s end the housing market will see about a 3% overall drop in prices compared with the prices of this quarter.  It is being estimated that the Northern region of the UK will perform at the lowest level, while the London housing market will remain relatively flat in regard to prices. 

Simon Rubinsohn, RICS primary economist, commented on what factors are most likely to affect the housing market, saying: “The general economic climate is likely to be the biggest influence on the residential property market.  Prices could edge a little lower as unemployment continues to rise. However, the lack of supply in the market is likely to prevent any significant house-price declines.”

The past few months have witnessed a gradual fall in demand for homes across the UK.