New Year Predictions – What will the property market do in 2015?

2014 has been an extraordinary year for the property market with prices jumping 10% for properties up to around the £700,000 mark and only slightly less for the higher end houses over £1million.

All the pundits have now made their predictions for 2015 and it seems that there are some consistent themes developing:

LONDON IS SLOWING
After a very strong 12 months where London prices are thought to have risen around 18% all the major estate agencies and mortgage companies see a slowing in demand and prices in 2015. The price increases predicted by most range from 1.5% to around 3% which is less than inflation. The reason is two fold. Less foreign buyers are expected to be buying next year due to global economic issues and the dreaded Mansion Tax which Labour say they will bring in if elected. Which brings me to the second reason: THE ELECTION. The housing market hates uncertainty and so it is thought that buyers will sit on their hands until they know the result in May.

MORTGAGE COMPANIES ARE GETTING MORE SELECTIVE – BUT RATES WILL STAY LOW
The new rules brought in this year have certainly made it much more complicated getting a mortgage with all the hoops people have to jump through to get approved. However, the Bank of England have signalled that the base rate will stay low for the foreseeable future, so overall I would expect the mortgage market to stay similar overall next year to this.

POPULATION IS RISING FASTER THAN HOUSEBUILDING
London is getting ever more overcrowded and there are simply not enough houses being built to meet demand – despite the significant new projects that are springing up all over Hertfordshire. The local market is very much affected by this as a large number of people looking around houses in Hertfordshire this year were trying to move out of North London to find somewhere less overcrowded and with good transport links and schools.

MY PREDICTION
I think there will be a rush of houses coming onto the market early in 2015 trying to get sold before the election followed by a bit of a lull in April/May after which people will get on with their lives. I suspect London prices at the lower to mid levels will still do well next year – rising by 4-5% – which is higher than many pundits. As a result I predict a 4-5% rise in property prices in Hertfordshire. Time though will tell!

As far as my business goes, we had a record year in 2015 driven by recommendations from happy customers so we predict strong growth in 2015 whatever the market does. I’d like to wish all of our clients and customers a HAPPY NEW YEAR! And if you are thinking of moving in 2015, or just want an honest appraisal of what your home is worth, just call me on 01992-878580 I’m always happy to help!