Strength in Numbers

Rupert Smith of Complete RPI gives an overview of the state of the buy-to-let market in the United Kingdom

Growth … Are You There?

Analysts are suggesting slower growth in 2015 than was the case in the year just gone. Somewhat rarely, there is near consensus among them on what that growth in property prices will be - about four per cent.

The UK housing market saw a spring and summer boom in 2014, particularly in London and the South of England, before activity dropped away a little towards the end of the year.

Recently published figures from the Nationwide Building Society - the first to record the annual change over the whole of 2014 - suggest that UK house prices rose 7.2 per cent during the year.

Another survey, by rival lender the Halifax, says that prices rose by 8.5 per cent over the year, although its official house price index data has not yet been published.

The UK housing market saw more activity in 2014 than at any time since 2007.

House sales were consistently above 100,000 a month in 2014, according to seasonally adjusted figures from HM Revenue and Customs (HMRC). It is the first time this has been the case since 2007.

It is a common view that the house price prediction for 2014 was accurate and in 2015 house prices are expected to grow by 4 per cent on average.

Predictions can always be thrown out by unexpected events, and longer-term estimates must be treated with even more care.

Those seemingly in the know are suggesting UK property price growth of 2 per cent in 2015, 5 per cent in 2016, 5 per cent in 2017, 3 per cent in 2018 and 3 per cent in 2019. We shall see.

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