London property prices will ease into a slower rate of growth over 2015, according to estate agent Marsh & Parsons.
They expect Prime London house prices to rise between 3 and 5 per cent in 2015, compared to the 11.4 per cent increase of the past twelve months.
Annual growth is forecast to be strongest (5 per cent) in outer Prime London, where typical house prices are 25 per cent lower than across Prime London as a whole, fuelling higher demand. But in the most expensive Prime Central areas of the capital, prices will climb by 3 per cent.
Marsh & Parsons expects the feel-good factor to remain into 2015 for sellers. As mortgage rates are still competitive, it also continues to represent a good opportunity for buyers.
Chief executive Peter Rollings comments:“The London housing market gave a stellar performance in the first half of 2014, but there won’t be quite the same encore next year. However, the curtain certainly isn’t going down on price growth. After touching the brakes in recent months, property values will continue to climb steadily again in 2015 – albeit at a more modest and orderly pace.”
The rental market
Marsh & Parsons expects more vigorous growth in Prime London rents, forecasting increases of 10 per cent throughout 2015. Following a period of largely stagnant rental prices, rents in Prime London have climbed steadily during 2014, and the pace of growth will pick up over the next twelve months.
Corporate tenancies have grown 14 per cent in 2014 compared to the same period in 2013, and burgeoning demand for corporate lettings and relocations will ensure continued expansion of this sector next year.
Peter Rollings comments: “The rental market will be where much of the action takes place in 2015. Those relocating to the capital for work are now biding their time before purchasing their own portion of London property – until question marks surrounding additional property taxes are erased. This will push demand in the corporate lettings sector even further, and the biggest rental increases are predicted to be among one or two-bedroom flats.”
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