Forecast real estate prices of London in 2014

In 2014, it is expected that the growth in property prices in London will outpace growth in the rest of the UK, but by the end of the year, the growth rate should stabilize. According to the forecast from the estate Agency Marsh & Parsons in the London property market in 2014, which was published recently, the rise in property prices in London will be in 2014 from 5% to 7 %, which is slightly less than the growth of prices in 2013, which has already reached 10.3%. The company notes that more growth is likely to occur in the first six months. The beginning of the year will begin with a powerful start prices, but by the end of the year, the growth rate should fall.

As began to leave the improved data on unemployment in the UK, the Bank of England is likely to slightly raise interest rates next year, which will definitely affect the real estate market. However, in the run-up to elections in 2015, it is unlikely the changes will be serious.

The main reason of price growth in London will be a shortage of available properties. In 2013, 18 people were registered as buyers for every new property. Most likely, this indicator will remain at a similar level in 2014.

Many buyers will be afraid to put your property on the market, because the total shortage of homes and they will be sure to find a viable option for relocation. As a result, real estate transactions in London would be about the asking price or slightly below.

Recently announced by Chancellor George Osborne’s tax on capital gains for foreigners from 2015 are unlikely to significantly affect real estate prices in 2014. Because the changes take place only in 2015, there is still more than a year, during which movement in the market may even intensify.

Despite the measures introduced, London remains the most interesting place in the world to attract investment capital, therefore, the demand for luxury and super-luxury properties is expected to a huge.

Improving economic sentiment will lead to an increase in demand for rent, especially in expensive elite areas. The increase in foreign employees in the corporate sector will create additional requests for rent in the exclusive areas such as Kensington and Chelsea, mainly for apartments with two bedrooms. In conditions of severe competition for the best apartments for rent in the luxury areas of the market will be throughout 2014.

® Helen Entree. 11.12.2013;