House prices will continue to head in only one direction in 2015, if one of the UK’s largest banks is to be believed.
Halifax has predicted growth of between three and five per cent will occur this year, as a variety of factors combine to push prices up – just as they were in 2014.
The financial institution’s housing economist Martin Ellis explained rising employment figures and low mortgage rates will be two of the most significant contributors to the expected increase in house prices.
Overall improving economic confidence is encouraging many people to sell their properties and move up the ladder, while booming rental demand continues to draw buy-to-let investors to the market.
However, it may not be entirely plain sailing for the property market in 2015, as the looming general election has the potential to generate minor disruption in the opening months of the year.
“A general election will always cause uncertainty, whichever party is likely to come in to power and any uncertainty may result in a temporary lull. However, we don’t believe this will have long-lasting implications on the market,” Mr Ellis stated.
Any effect of a general election could be at least partially mitigated by the recent stamp duty reform, which has made it more affordable to buy houses and flats at certain price points and is also likely to help more first-time buyers enter the market.
With house price rises expected for many months to come, now is a great time to buy a property – whether for residential use or as an investment – as capital appreciation should kick in with immediate effect, leaving buyers in a stronger financial position in a relatively short period of time.
If you are interested in buying or selling a property in 2015 and would like to know more about the advantages of doing so, please contact your local Leaders branch.