Predictions For London Property in 2015
The near future of London’s property market seems impossible to call at this point, as numerous commentators have given contrasting opinions about whether prices will rise or fall, and how the May election will could affect the market in the whole of the UK.
Alex Newall of Hanover Private Office believes that, for the early months of 2015 at least, the market looks better for buyers than sellers: ‘For deal hunters, January and February will be a good time because sellers are battle-worn if they’ve failed to sell before Christmas.’ Estate agents Hamptons International, analysing more than 35 years’ worth of data, claims that buyer demand falls by roughly 20% in the three months preceding a UK general election, so those buyers looking to make 2015 purchases would probably be best off making their purchases in the first few months of the year.
The election uncertainty will also be to the betterment of those buyers looking to purchase homes worth £2,000,000, but for a lower price. The proposed ‘mansion tax’ would increase the annual fee for homeowners whose property is worth over £2,000,000 and so many sellers now are looking to offload such properties for a lower value. According to the website Primelocation more than a quarter of homes from £1,700,000 to £2,000,000 have had price cuts so far, indicating great savings for potential buyers.
The potential for buyers to snap up a good deal may be impeded, however, by a changing trend in estate agent advertising online. Thousands of UK estate agents have announced plans for moving their advertisements from the popular real estate portals of Rightmove and Zoopla to the new (cheaper) website On The Market, to be launched on January 26th. This could result in decreased visibility for properties advertised through those agents, and could end up costing the seller as a result.
Improved transport links in and around London will almost certainly raise property values, according to Haringtons UK, as there is a recognised link between transportation improvement and house prices. Most notable of these would be the high speed HS2 link from London to Birmingham and the proposed extensions of London’s airports, particularly Gatwick. However the potential increase of interest rates by the Bank of England means that sellers may need to reconsider and even lower prices in anticipation of rate rises, so London still looks to be a buyers’ market for the first half of 2015.
Read more at This Is Money.