2013 was a fantastic year for property owners, particularly in Central London and sought-after suburbs. With prices soaring, a lot of people have seen their houses increase in value over the last couple of years.
We took a look at the main points affecting house price trends in 2014:
With the economy on the up (it grew at an annualised rate of more than three percent in the second and third quarters of 2013), there is growing confidence in the housing market and consumer spending. Mortgage approvals in November were their highest in five years and with low interest rates and Help to Buy, purchasers feel confident when it comes to buying property. This in turn, has boosted confidence in the construction industry which brings us onto our next point…
Central London and its environs are like one big construction site at the moment. With the construction industry picking up and regeneration projects underway across the UK capital, the spots around transport links are the ones to watch. From the centre to Hammersmith to the surrounding suburbs, there’s a lot of building work going on!
There’s not much doubt that next year will mean higher house prices for home owners. We believe that areas such as Wimbledon and Coombe will strengthen, when it comes to properties above £2,000,000. There also continues to be strong demand below £2,000,000 where Stamp Duty rates are lower. Experts have predicted that Greater London will catch up with Central London in 2014 and the largest building society in the UK, Nationwide, has said the supply of new homes is still scarce – contributing to an 8.4 percent annual rise in house prices; the biggest since June 2010.
Help To Buy
Help to Buy has been a contentious topic, with some pundits claiming a bubble will inevitably develop as a result of the government-backed scheme. With the second phase rolled out last September, it seems as if this is growing in popularity, with application rates having doubled in a month! The Bank is due to review Help to Buy in September, but Governor Mark Carney has said it could make recommendations sooner if it felt that there could be problems with economic stability.
Forget the introduction of Capital Gains Tax for foreigners in the budget, the thing that concerns most people is the possibility of interest rate rises. Luckily we think this won’t be happening in 2014 – what with a General Election looming and the Bank of England committed to keeping interest rates at a record low until unemployment is reduced to seven percent (this has been left open to debate as there are concerns that this target could be reached by the end of the year).
We’ll have to see how 2014 plays out – but we predict a good year for property! Also, do get in touch with us if you’re looking for houses for sale in Wimbledon. We look forward to hearing from you. Happy New Year!