Although large parts of 2014 were very strong in the UK’s property market, with price rises hitting 7.2 per cent across the year according to Nationwide, the end of the year proved to be a little quieter.
As December came to a close, market experts were reporting weeks of lower price growth and smaller numbers of buyers. It led many to ask the question is the UK property market cooling?
However, according to one expert, this is nothing to worry about, and even though 2015 could see prices rising much slower than in 2014, this year will be one where activity levels off and the market proves itself as a sustainable entity.
Ray Boulger, from mortgage brokers John Charcol, said that he expects the price of property to rise by around four per cent in 2015, largely in line with predictions released by other companies such as Rightmove and Savills.
He said that activity levels will not fall, as many have feared, and that for the year as a whole, activity should be roughly in line with what we saw in 2014.
Like many experts, Mr Boulger believes that the first few months of the year will be hampered somewhat by the election and uncertainty that surrounds it. However, as the year progresses, he expects more people to be purchasing property, and this will improve levels later in the year.
Martin Ellis, housing economist at Halifax, backed this belief, stating that two opposing factors will collide to ensure the market has a roughly stable 2015. While the election will dampen demand for a few months, the latter part of the year will see the desire to buy houses bolstered by the first above-inflation wage rises for a number of years.
Rising interest rates are another factor that many have talked about in the last few weeks. However, while many expect the base rate to increase to 1.25 per cent in October, most agree that it should be of no real detriment to the market this year.