Property Reporter



Top 5 Predictions For the 2014 UK housing market

Line Spacing+- AFont Size+- Print Forward to a friend Property
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 Hatched.co.uk, reveals his predictions for next year.

7% increase in property prices in 2014

12 months ago, Hatched.co.uk 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 Hatched.co.uk's completed sales in 2012 was just under £217,000. Throughout 2013, the average price of a house sold by Hatched.co.uk 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

Hatched.co.uk 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%. Hatched.co.uk'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.

Source: Hatched.co.uk


Got something to say? Leave a comment below:

You must be logged in to leave a comment

More articles from Property

House prices jump £700 in January says Your Move

New RICS data reveals the storm before the quiet

Top tips to combat vendor tricks

24% rise in Prime London's new buyer registrations

New research reveals areas most affected by a rate rise

Over 60% confused by UK's 'Unfair' property buying process



Latest from Financial Reporter

Latest from Commercial Reporter

Overcoming underwriting hurdles in bridging finance

SME lending marketplace launches online

Landlord Legal Solutions launched to support buy-to-let landlords

New lender opens its doors with BTL range


Latest Comments

misha gerasimov
misha gerasimov 11 Feb 2016

"Spain’s real estate market has become one of the world’s most popular real estate markets in just half a year. It made it to sixth place in CBRE’s ranking of the world’s most successful property markets...

view article
Solicitor2Flipper
Solicitor2Flipper 10 Feb 2016

I think it will, and is the very reason why I am having a bit of a change of mind. Before the SD surcharge announcement, I was determined to stop letting. Now, I think perhaps all is not lost - thanks...

view article
ChevDev
ChevDev 06 Feb 2016

Right to rent is another classic example of government failure. Why should I as a Landlord have to check the legality of a tenant? If they pay the rent and look after the property that's all that concerns...

view article
PeterD
PeterD 23 Jan 2016

The majority of people certainly in this country are honest hardworking people who have never missed payments but have been caught in this minefield. I congratulate this business and wish them every success...

view article
Michael
Michael 20 Jan 2016

Despite many sounding a note of caution, there are others, including Mr Lewis, who remain optimistic. However, it's strange the author does not make any reference to the fact that it is commercial property...

view article
Solicitor2Flipper
Solicitor2Flipper 03 Dec 2015

I have been thinking about the 'possible' exemption for "larger" corporate landlords, and I wonder if this wouldn't constitute "state aid", which is prohibited under European legislation unless prior approval...

view article
Andy
Andy 25 Nov 2015

If the Government wants to preserve the residential properties for the local people, they should stop granting golden visas for foreigners who invest £300,000+ in residential property. Or at least increase...

view article
Stephen Crofts
Stephen Crofts 25 Nov 2015

And the report is compiled by an on line "Estate Agency"... convenient! In my experience on line estate agencies have no interest from the minute you've handed over your marketing fee... and just watch...

view article
warren
warren 18 Nov 2015

Challenge accepted. ;)

view article
Mortgage_Biz
Mortgage_Biz 18 Nov 2015

You're using a Solicitor to write a piece on Mortgages..?!! C'mon guys you can do better than that! points 2, 3, 4 and 5 are just utter rubbish....how about I write something on conveyancing and we'll...

view article
DGS
DGS 10 Nov 2015

I am an Agent based in LBO Brent, we are members of ARLA, NAEA and RICS and have had to deal with Brent's Additional Licencing scheme which came into effect on 1st Jan 2015. It has been extremely onerous...

view article
Solicitor2Flipper
Solicitor2Flipper 06 Nov 2015

...this 'thinking outside the box' mentality is encouraging, and I think, what we need :)

view article

Latest Tweets