According to RICS' 2015 UK Housing Market Forecast, house prices increases will be influenced by recent changes to Stamp Duty, continuing demand and lack of supply of property.
Across the UK, RICS expect all parts of the country to see modest price rises during 2015, with the South West, Wales and London experiencing the lowest rises at 2% and 0% respectively.
Chartered surveyors reported London’s housing market was ‘pausing for breath’ both in terms of pricing and activity towards the end of 2014, however RICS predict that the eastern boroughs and some other non-prime areas are likely to see more buoyant market conditions in 2015.
The number of sales transactions is also predicted to see a further increase during 2015, moving up to 1.25m (from 1.22m in 2014).
The forecast suggested that concerns about mortgage availability in the wake of MMR would be underpinned by a firm economy and stamp duty reform in 2015.
The report stated:
"Although the MMR may now be resulting in mortgage lenders being a little more discriminating in the supply of finance, the recently announced, and long overdue reform of Stamp duty, is likely to provide a tonic for the market across many parts of the country, particularly for first-time buyers. That said, the bigger affordability issue is not going to go away highlighting just how important it is to speed up the supply pipeline of new homes over the coming years."
Jeremy Blackburn, RICS Head of UK Policy, said:
"The political ambition to meet the UK’s housing deficit of 240,000 means that debates around planning, development and delivery will monopolise the pre-election period in the run up to May 2015.
"We’ve seen four housing ministers in this Parliament and there is no reason to think that housing won’t continue to be a political football in the next.
"What we need is certainty, clarity and confidence from government to keep us building homes. Reforms to Stamp Duty should underpin public confidence and lead to a greater number of housing transactions and we would now look to any future government to review council tax."
