With the holidays fast approaching and a new year on the horizon, it is always nice to look back over the previous twelve months and reflect on the year as a whole. For most, it is hopefully a time of realisation that 2014 has been a productive and prosperous year allowing for a strong foothold going into the 2015. The London property market has most certainly been one of those years! Starting on the back end of a strong 2013, the early months saw a continuation of a strong sellers market with exponential price growth. Open days were still very much the norm, with a queue of buyers down the street every Saturday with the hope that no cash buyers would be in attendance!The Mortgage Market Review (carried out in April by the FCA) saw a minor slow down in the market. Not in terms of interest from buyers, but in the turnaround of getting sales through to exchange due a delay in mortgage offers being submitted. Whilst frustrating from a buyers/sellers perspective, it was apparent these new steps were needed to ensure sensible and responsible lending and will hopefully stand the market in good stead in the future. The second half of the year had one question on the end of everyone's tongue… ' are interest rates set to rise any time soon?' With a base rate all time low of 0.5% for over 5 years and a general election due in the coming year, the question was a genuine one and what was once positive media swiftly changed its tune! In a market driven by the media and consumer confidence, it became apparent that many buyers decided to put the search on hold over this uncertainty. None the less, property continued to sell at premium prices with good buyers very much present. The final quarter of the year has very much seen a return to a 'traditional market' which more than anything has allowed for the more accomplished estate agents to shine. Gone are the days of just sticking a property on rightmove and a buyer offering within 24 hours! The chancellors December announcement of a stamp duty reform has also provided a more favourable and fairer way of calculating the tax (Unfortunately only for those buying up to £937,500!) and has already seen a positive effect amongst first and second time buyers with more than noticeable savings being made. "Gone are the days of just putting a property on rightmove and a buyer offering within 24 hours!" In a nutshell, the year has been one of continuation and change (Not all change is bad!).With a string of reforms and the reversion to a traditional market where buying and selling becomes more of an even playing field, we are confident that 2015 will continue to show the strength, confidence and resilience to economic change that has allowed London to become a global leader in the real estate market.
