Is your living room carpet the key to 2015 house price predictions?
Carpet and floor fitters have hit the headlines, with sales of new carpets being suggested as an indicator of house price increases for 2015.
Carpet and floor fitters described a market where house ‘movers’ will spend more on refurbishments for their new property, while ‘stayers’ will redecorate to improve their home.
Property experts are predicting 4% growth in house prices for 2015
However, there may perhaps be more ‘stayers’ than movers. Property experts have reigned in last year’s property market forecasts – some predicted an 8% rise in house prices in 2014 but have now cut that to 4% growth for 2015. Michael Foxford, Partner at Birchall Blackburn Law and Conveyancing expert, said:
“The predicted increase in house prices is good news all round. Combine that with last month’s changes in Stamp Duty Tax and things are (slowly) looking up.
“This 4% prediction is about as good as we could hope for, with general inflation sitting at 1%. Providing the economy holds up, the lenders keep lending, and wages beat inflation levels, this is welcome news if you’re looking to buy or sell in 2015.”
First time buyers are at their highest since 2007
Lending rates have been improving and many first time buyers report that they’ve found housing more affordable. Michael explains:
“Even though house prices rose last year, first time buyers are reporting more affordability. With better mortgage rates now available, buyers don’t need to use such a large proportion of their wage for repayments.
“Combine that with Help to Buy Schemes and the fact that lenders are asking for smaller down payments and it’s clear that property is now more appealing to buyers who were understandably cautious (or even stuck) during the recession.”
Experts say that we don’t need (or want) a return to the 2006/7 situation but that the market needs more buyers and sellers. This way, house buyers can count on a degree of fluidity that has been lacking in recent years.
More homes were consistently sold in 2014
HM Revenue and Customs (HMRC) reported that house sales were consistently above 100,000 a month throughout 2014. Looking back, the UK housing market also saw a real boost in the spring and summer of 2014 before dropping slightly in the winter.
We hope 2014 has set a precedent of improvement and indeed, that things will continue to improve. For now, predictions can always be offset by the unexpected and such long-term estimates should be used as a guide, rather than assurance.
If you’re buying or selling property in 2015, talk to our expert Conveyancing team for advice from people who are there with you every step of the way. Buying a house is one of the best times to get your affaires safely in order with a Will.