Agents and Lenders Reveal 2014 Property Predictions

Thursday, 02 January 2014

The National Association of Estate Agents (NAEA) recently revealed their predictions for the property market in 2014, and they include some good news for homeowners - but not so good for first-time buyers.

In statements published in the Mortgage Finance Gazette, NAEA managing director Mark Hayward commented that market conditions improved significantly during 2013, "thanks to a reviving UK economy and various successful government schemes like Help to Buy and Funding for Lending, and this buoyancy looks set to continue well into 2014."

He adds that a slower increase in transactions, and the slower rate of house price rises outside of the South East suggest that fears of a 'bubble' returning might have been overblown - though there are other issues to consider.

The stagnation of salaries and the large cost of Stamp Duty remain big obstacles to first-time buyers. And with The Daily Mail reporting that George Osborne has already used the 37% increase in Stamp Duty revenues this year to cut UK borrowing, there will be calls to ease the burden.

However, it looks like these may fall on deaf ears: a Treasury spokesman recently commented that, "the job is far from done. The only way to ensure that the recovery is sustainable and the deficit keeps on coming down is to carry on taking difficult decisions".

Other concerns for 2014 include the uneven rise in house prices. As well as the predictable price rise in the South East, a Lloyds Bank study has shown that house prices in Britain's market towns now carry an average premium of 6% (around £14,000) and that house prices in market towns have soared by 50% over the last ten years - making it all the more important for buyers to find the best home insurance deal.

Meanwhile, a separate study by American Express showed that houses close to a prosperous high street are also candidates for increased growth, with prices predicted to outperform comparable houses further from the shops to the tune of £70,000 over the next decade.

Sources:
1. http://www.mortgagefinancegazette.com/estate-agency/housing-market-will-be-buoyant-in-2014-says-estate-agency-trade-body/
2. www.dailymail.co.uk/news/article-2511560/Chancellor-slash-borrowing-billions-thanks-stamp-duty-Swell-housing-market-recovering-economy.html
3. http://www.dailymail.co.uk/money/mortgageshome/article-2511822/Market-town-premium-boosts-house-prices-14k-higher-county-average.html

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