Top 5 Predictions For the 2014 UK housing market

Top 5 Predictions For the 2014 UK housing market

With the UK's economic recovery gaining momentum and widespread reports of an expanding housing bubble, what lies in wait for the property market in 2014? Adam Day, Director of online estate agent, reveals his predictions for next year.

7% increase in property prices in 2014

12 months ago, predicted that the market would rise by as much as 2% assuming the government did not intervene. In 2012, the average house price, according to's completed sales in 2012 was just under £217,000. Throughout 2013, the average price of a house sold by across England & Wales rose to £221,000, suggesting a rise of just less than 2% in 2013.

Although the government did intervene with the new Help to Buy scheme in April 2013 (phase one), this will not affect house prices until 2014 when people start to fully understand the scheme and, sales under the scheme start to complete.

Throughout 2014, we predict that house prices will rise at a much quicker rate than in 2013 and by the fastest rate since the housing crash. We believe that house prices could rise by as much as 7% across England & Wales, with double digit increases in London and the South East. If you are going to buy, this is the time to do it!

Start of a 'New Cycle'

The UK property market is at the start of a 'new cycle', with sustained growth of between 6% and 8% per year predicted for the next five to 10 years, possibly even up to 12 years.

In 2015, we expect interest rates to start to rise, which in turn will impact the housing market, but not to the same degree as the credit crunch in 2007/08. We will see more of a slowdown in price rises, which will be what the market requires at this point to prevent it from overheating. A long-term word of warning though, watch out for 2025/26 when we predict the market will crash again as this has been the rough cycle for decades now.

Until the government (and any subsequent government) gets to grips with speeding up planning permission, encouraging building on Brownfield sites, as well as some Greenfield sites and forcing builders to build houses and not flats, then the market will only go one way. And that is up.
Significant growth of online estate agents and the other top online estate agents have grown from literally nothing just eight years ago, to having a market share of between 2% and 5%.'s market share alone has grown by 585% since July 2007.

We predict that online estate agents will grow to between 10% and 15% of the market by the end of 2015, with further significant market share being gained over the next five years. Between 60% and 70% of all properties will be listed by online estate agents by 2020, wiping out over 7,000 high street estate agency offices across the UK.

To counter this growth, high street estate agents will start to move their operations 'upstairs' or begin to offer a menu of services, or 'lite' versions to try and compete with the new breed of online estate agents.
Private house sale sites on the rise

Recent government legislation changes to the Estate Agents Act and the Property Misdescriptions Act will result in more private house sale sites. However, we do not expect these sites to have a significant impact on the market as they still require access to the main property portals to find buyers. And, if they cannot find buyers, they do not have a business!

We also predict that some big names in retail may try to become intermediaries due to the new changes to the Estate Agents Act. However, as with private house sale sites, the key to success is access to the big property portals which, for now anyway, will not be granted. That being said, for enough money the portals would likely change their minds. If this happened, it would blow the whole property market wide open and accelerate the demise of the high street agent even quicker than predicted.  
New portals pose a serious threat

The much anticipated arrival of the Agents' Mutual site could have a profound effect on the dominant position of the key property portals. If Agents' Mutual's numbers are to be believed, then they are going to make a serious dent in one or other of the property portals subscriptions. If Agents' Mutual comes to fruition in 2014, we predict that Zoopla will be the biggest loser.


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Latest Comments

Northerner 20 Oct 2016

Any views from outside the M25? No wonder politicians can't get the housing big picture when everyone seems to think that London is the yard stick, when it absolutely is not.

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Sean Lees
Sean Lees 13 Oct 2016

I think that the pest control really depends on the situation. If the tenant moved in and found an infestation that needs pest treatment service, I think it's more reasonable that the landlord should pay...

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Kevin 13 Oct 2016

Please Sian Berry Dan Wilson Craw LANDLORDS DO NOT WANT TO RAISE RENTS They are being forced to because of Section 24! An unfair, punitive tax hike that will be a disaster Green Party, Generstion...

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Fletcher88 11 Oct 2016

Absolutely agree! Moreover property prices edged up with 0.7% this month as the market recovered from the initial Brexit hit

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Gary Das
Gary Das 06 Oct 2016

A lot of lenders (especially the high-street banks and lenders people approach first) could do more to accommodate for the self-employed. It can really be a struggle, as I found out myself last year when...

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richardrawlings 04 Oct 2016

Not sure I understand this! If Basildon and Hemel rose 68% and 52% respectively, why do they not appear in the top ten list, which appears only to feature those in the minus 20's!! Is it me?

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luxus 27 Sep 2016

It can be stressful. More clarity is needed on the process, from a customer perspective and consideration should be given to using the Scandinavian model where the sales process is much quicker.

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Melissa_Green 26 Sep 2016

Green belts are normally designated around capitals and other major cities and conurbations and their aim is to prevent urban sprawl by keeping land permanently open. The essential characteristics of green...

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Jimmy_McCoy 16 Sep 2016

I think that the main reason to buy garden purchases in last minute is because people always search for the best deal. In summer months there are abundance of seasonal goods and it means more low cost

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Jimmy_McCoy 16 Sep 2016

Buying a home often is more expensive than you expect. There are lots of hidden costs such as: stamp duty, surveys and valuations, mortgages etc. that can add more than 10% to the total bill

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Homebuyerconveyancing 15 Sep 2016

We are seeing a massive influx of Homebuyers using online Estate Agents. The winners are the online portals that still aim to manage the customer journey to homeownership. They provide a valuation service,...

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oliviaG 12 Sep 2016

Without a doubt renovating can truly be very beneficial to many homeowners but it depends to a great extent on the condition of your home and the parts of it you want to refresh. Before you start you should...

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