Commercial and Residential Development expert Richard Carr believes that this year’s general election will have a big effect on the housing market in 2015.
The housing market in 2014
Richard Carr acquires planning permissions for developers on behalf of his employer Jacob Carr Homes Ltd. He has over 30 years’ experience in the industry and examples of his past and recent work can be found under the ‘Developments’ section of his website.
The housing market experienced two booms during 2014, particularly in London and the South of England. The market experienced growth during the spring and summer and recent figures published by the Nationwide Building Society suggest that UK house prices rose 7.2% during the year.
House sales during 2014 hit a seven year high; on average 100,000 homes were sold per month during the year.
Looking ahead to 2015
Analysts are suggesting a slower growth in 2015 with the consensus estimating a property price growth of around 4%.
Despite the recent changes to the stamp duty, experts believe that it will have little effect on the market with activity being dampened until the outcome of this year’s general election.
Other factors that could shape the growth of the property market include a rise in wages and the threat of rising interest rates.
On the whole, the general feeling is that it could prove to be a quiet year for the housing market with the lid being kept on prices, owing in part to ‘nervousness’ among potential high-value property buyers.
No change until the election
Like the analysts, Richard Carr believes that the housing market will remain flat until after the election and then what will happen will depend on the winning party.
He believes that a number of serious issues will arise if Labour and SNP hold power including a sharp fall in equities, an increase in cost of borrowing by the government and a fall in the value of the pound.
However, if the Conservatives continue in power, along with the possible help of UKIP, then Richard believes the opposite will happen with the property market rising during the second half of the year.