Predictions for The Housing Market 2015
Despite the forthcoming General Election and the threat of interest rate rises in 2015, we predict the housing market will remain buoyant this year.
Help To Buy Schemes
The Government Help to Buy Schemes helped to stimulate higher than normal transaction figures at the start of 2014, which continued throughout much of the year and are set to run for the whole of 2015. They will continue to assist first time buyers and individuals looking to move house in raising the required deposits.
Stamp Duty Land Tax Changes
The stamp duty changes that came into effect in December will have an impact at the start of 2015 as first time buyers will have a little bit more money in their pockets to enter the housing market with more confidence in the event that they are purchasing properties under £500,000.00.
Many experts believe that the housing market may be subdued at the start of 2015 with the prospect of the General Election on the horizon. Instructions in April and May will inevitably slow down as a result of the malaise leading up to the General Election. We would expect a resurgence in the summer to make up for the deficit.
Rugby World Cup
World sporting events and world events such as the volcanic ash scenario or extreme bad weather all impact on the property market. The rugby world cup during the autumn is likely to have an impact on instruction figures, although it is unlikely to have the same impact as previous football world cups or royal events.
We do not envisage that interest rates will rise considerably in 2015. The Governor of the Bank of England has new powers to curb lender borrowing, which is a more effective way of slowing down the housing market, as opposed to rising interest rates which slows down the greater economy.
We anticipate that house prices will rise consistently throughout the whole of England and Wales by approximately 5 to 6% throughout the course of 2015. House price growth will continue at a higher rate in London and the South East as usual.
We expect transaction figures to remain similar to those in 2014, which were a vast improvement on previous years. This will still be a difficult year for new instructions and we will need to work hard on client service to ensure continuity of business.