When it comes to UK, its property price is always the most talked about topic and people curiously have an eye on it. With the prices of property are all ready to come up at the winding stage, according to the latest outlook report, they are expected to finish in 2014 by 9% with another rise of 5% in 2015.
Despite of rates breezing and the intimidating in the next year general election, Strutt & Parker, the real estate firm, amasses with its reserved economic advisors volteraa, a per the report. But, with Strutt and Parker’s predicted growth of 3% in 2014 and a further 2% in 2014, the outlook for the prime central market of London is more subdued.
These predictions of London’s property prices are the stark contrast to 2010 and 2011 when the prices of prime central London had increased by over 13% year on year. As per the firm, whereas enhanced economic foundations would certainly imply that the prices will enduringly rising over the next coming years, the major apparent tentatively adjoining the market of property over the rest of 2014 and 2015 will continue to be able to looming election.
As per the agents, in some areas, there is a continue slowdown as the buyers and sellers both are nervously waiting for the latest general election and the potential or a mansion tax. According to Mr. Stephanie McMahon, the head of research at Strutt & Parker, “This is just a beginning to boost into the transaction levels. As is often the case in uncertain times, there is also a probability that this transaction levels will drop off up to May 2015, but values could hold up better than expected.”
In addition to the general election there could be plentiful other prospective headwinds that may be slowing the property market, comprising the talk of interest rate changes and the Mortgage Market Review (MMR) and the slowdown it is causing,’ she explained. Adding to this conversation, she also said that it is very essential for us to remember that the property market is all about supply and demand where on the supply side, the government is systematically progressing to boost house building across the country, and topical productivity figures from the construction sector reflect this.
The prices of houses tend to grow when stock is low and with more houses being built, mainly in the downside of the housing market, over the next few years, this could also have a vast effect on the prices of UK houses,’ said McMahon.
The main reason of this price market growth in recent year is the consistent shortage of good quality housing stock in the most sought after locations. For the reason, any potential raise of supply to the market in central London would hence have a descending pressure on prime central London house prices and we have taken this into consideration in our London predictions,’ she added.
In other words, we can expect for the price growth with the end of 2014 and even more in 2015 that would be sensitive to prevailing political press and expectations,’ she concluded.