February 12th, 2014.
Predictions for the 2014/15 Property Market
As we quickly approach the start of the new financial year, now is the best time to start making predictions for how the property market will change throughout the next year. These can be very difficult to calculate due to the fluctuating nature of property and the various political motifs involved. Here’s what some think will happen:
Slow Increase in Interest Rates
Despite every claim Mark Carney has made that there will be no change in interest rates until 2016, experts believe that the UK will see a gradual increase throughout this year. This will be a very slow rise, one that will be almost unnoticeable to almost everything but multi-million pound deals. However, this will make it an easier transition for the bigger changes that will be coming in at a later date.
If you’re planning on investing, then getting a fixed mortgage now could save you thousands over the next couple of years. By deciding to talk to business finance brokers now you can maximise these savings even more with competitive rates and longer fixed deals.
Property Prices Going Up
Investors will be delighted to hear that the property prices across the UK will be on the rise throughout the country. Just how much you can expect the increase to be will vary massively in different parts of the country, with increases of around 40% predicted to take place in London. Elsewhere you can still expect to see impressive increases between 20-30% which can make your £1million investment shoot up by £200-£300k in just one year.
Increase in Prices Turns Towards Seller’s Market
Since the economic crash of 2007, the property market has been very much in the buyers favour. This has been due to a static market, where people don’t have the money to buy property and therefore prices have been lowered to force a sale. Now that property prices are on the rise, the ball is once again in the seller’s market allowing them to turn down petty offers and hold out for a better price.
Having a seller’s market will mean that affordability will gradually decrease, making the initial purchase of buy-to-let and investment properties higher. This will change the way in which many investors approach the market, as quick wins will be eliminated and it will take much longer for large profit margins to be made.
Greater Return than 2013
Commercial property saw an increase of nearly 12% last year, which is set to continue throughout 2014. Similar returns have been predicted for this year, with a total return of around 11% suggested by many of the industry’s top experts. This figure can be altered by finding the best possible finance package for your needs and ensuring that you buy in the right areas – mainly London, Manchester and Birmingham, which are expecting increases of between 30-40%.
To ensure you’re getting the best finance package, talk to our team today. We’re dedicated to finding you not only the lowest rates, but a lender who meets all your needs.
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