House prices in England and Wales look set to end the year up 8.5 per cent and by 5.5 per cent in 2015, says Hamptons International.
The residential agent has updated its forecast and warns that the pace of growth is beginning to soften due to affordability constraints, plus both buyers’ and sellers’ expectations of moderate future price growth.
In addition, the approaching general election is adding to caution in some sectors of the market and this, combined with rising interest rates is likely to mean weaker price growth throughout 2015.
Hamptons says there is still a clear divide between the South of England and elsewhere in the country with price growth expected to remain more subdued in the North and Midlands.
Prices in Greater London are forecast to rise by 15.5 per cent in 2014 and 3 per cent in 2015 while in the South they are expected to grow 8 per cent this year and 6.5 per cent next year.
Commenting on the figures Fionnuala Earley, director of residential research at Hamptons International, says: “The rate of house price growth so far in 2014 has been a little higher than expected.
“Prices have been driven largely by London and the South East, but a change in sentiment over the rate of future price growth has affected the whole of the country and we expect that to result in a moderation in house price growth next year.”
