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Our previous article left off at the beginning of 2014. The London property market continued to see immense growth through the second and third quarters before slowing down somewhat as the New Year approached. According to Nationwide Building Society house prices rose overall by 17.2% during the year in London. But what can we tell of 2015 so far?
Current trends in the gentrification of inner London will certainly continue as a robustly recovering economy will ensure the steady supply of professionals and high earners in places like Shoreditch and Hackney.

What do estate agents in London say?

Many analysts foresee slower growth during this year in our Capital. As per Savills: “London, having experienced the strongest price growth, will be most affected and so we are predicting prices will flat line (in 2015), with five-year price growth totalling just 10.4pc, the lowest of any region.” In fact, prices in London today are exactly where they were a year ago.
Part of this is due to the fact that many buyers have simply had enough and are unwilling to shell out vast sums for overpriced property which they can purchase at a fraction of the cost by opting to live further afield, but still within commuting distance of the city.

Other variables that will impact the market this year are whether historically low mortgage interest rates will continue and what the outcome of the general election in May will be. Paul Smith, the chief executive of Haart, said: “Borrowers have never had it so good, as highly competitive mortgages are in abundance with lenders falling over themselves to gain market share. While property prices in London are back to January 2014 levels, this window of affordability will be short-lived as a severe stock shortage spreads pre-election . This means the London market is in stalemate, with plenty of people wanting to buy but a dearth of suitable stock and this will only send prices upward again.” So who knows? Perhaps after all we will be seeing resurgence in London housing prices come the summer.

We wish all of our clients a prosperous 2015.

Article written by Matt Miel

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