The Pervaiz Naviede Trust welcomes news from Strutt and Parker that the house market recovery has reached beyond London and into the UK as a whole.
After a shaky end to 2014 it appears that things are looking up for the UK property market overall and the news is welcomed by the Pervaiz Naviede Family Trust, owners of property development company LPC living.
The latest quarterly market report from Strutt & Parker reveals that “despite some challenges” the outlook is positive for 2015. The only area of the UK that is not expected to see growth in 2015 is prime central London, which is currently being hit by uncertainty surrounding the so-called introduction of a ‘mansion tax’ and high rates of Stamp Duty on properties valued at more than 2 million.
Property price growth in the UK is currently forecasted to be 5% in 2015 with growth in greater London expected to be 9%. This continues the trend of runaway prices in the capital which appears to be difficult to stop until prices reach a ceiling as they appear to have done in prime central London.
Stephanie McMahon, Head of Research at Strutt & Parker, said: “There still lies an imbalance between London and the rest of the UK but there are signs of strong recovery in the regions as buyers outside the capital look for affordability.
The holding off of interest rate rises, now not expected before autumn 2015 at the earliest, is a big positive. This combined with continued wage growth – UK real wages and living standards began to recover for the first time in five years in December – and low inflation, should give the national market the momentum it needs. We should see a flurry of activity up until the autumn as buyers take advantage of the low interest rate environment.”
Investors may not be buying up property in prime central London as investments but they are looking for properties valued in excess of 2 million outside the capital for their primary residence.
According to Strutt & Parker’s research the majority were more likely to be buying a large country home for their primary residence (79%), rather than for a second home (13%) or for investment (8%).
The reasons for this move away from London are unclear, but the one possibility is that £2million buys a lot more property outside the capital than it does inside.
James Mackenzie, Strutt & Parker’s Head of Country Department, said: “The beginning of 2015 has seen a significant increase in new applicants registered with us looking for prime properties ‘in excess of £2m’.
The report also reveals that 2014 saw a significant increase in the number of transactions compared to 2013 especially in the regions outside of Greater London, as well as in Scotland, both of which recorded 7.8% and 11.6% growth respectively. In Scotland, 93,972 homes were sold in 2014, worth a total of £15.4 billion.
The report will offer new hope to regions outside London. Property owners are likely to be more confident of selling their homes for the asking price in 2015 rather than forced into heavy discounting to secure sales.
Posted on: February 24, 2015