UK Housing Market - a look into 2015

 
UK Housing Market - a look into 2015

With the General Election fast approaching it is predicted that the already slowing housing market, will cease to a halt as uncertainty over political party mandates are discussed. But these concerns should at least support the estate agent's rental business next year and that a steady upward trend in transactions will emerge toward the end of next year.

Since this year's spike which was evident in the first quarter, the housing market has cooled which is backed by statistics and in-depth research, which suggest that this is largely down to the upcoming election assisted by the implications of the strong pound on international buyers coupled with stricter lending requirements as a result of the Mortgage Market Review which set out the case for reforming the mortgage market to ensure it is sustainable - It had become apparent that during the height of the market in 2007, that, while the mortgage market had worked well for many people, it had been a cause of severe privation for others.

Reports indicate that "uncertainty in the run up to the election has been most apparent at the top end of the market as a result of concerns over a mansion tax proposed by the Labour Party and new measures impacting overseas buyers have been raised."

Central London's slow-down is expected to continue into the New Year, with a 5% fall in house prices forecast for the first half, but an anticipated surge during the second half could leave house prices level on 2014. And while Suburban London will also continue to slow as supply and demand is rebalanced, the South East will benefit from those in London relocating, with prices set to rise by 3% by the end of 2015. And delays to an interest rate rise should help maintain the middle market by keeping mortgage costs low. Although activity is set to be flat for the remainder of this year, next year should see an uptick due to increased foreign investment and re generational development becoming much more apparent across the whole of London as foreign buyers continue to purchase off plan units for investment purposes which certainly helps maintain and increases prices. In addition we believe that Cross Rail will inevitably have an impact on the remainder of London as it has already had a strong positive impact in certain areas and is proving a decisive factor for people debating where to invest.