Consumer anxieties over interest rates have fallen following the drop in inflation to 0.5% last month. The Halifax Housing Market Confidence Tracker showed a 6% drop in Q4 2014 in the number of potential buyers who see interest rate rises as the biggest obstacle to buying a property.
Just 13% of potential buyers now consider interest rates the main barrier – the lowest level recorded in over a year.
The Office for National Statistics announced earlier this month that UK consumer price inflation was at its lowest level for 15 years, falling from 1% to 0.5% from November to December 2014.
The Bank of England vote this month to keep rates on hold was unanimous, leading experts to speculate that rate rises could be pushed back all the way to the end of 2016. Meanwhile, mortgage lenders are battling it out to offer the best deals, leading to falls in the cost of short-term mortgages.
But the number one barrier to buying a property remains raising money for a deposit, with 61% viewing this as their highest hurdle, up from 57%. The Mortgage Advice Bureau published data showing that the average deposit for all buyers in December was £71,078 or 31%, increasing by 3% in one month.