Outlook for 20015 property market
Property market outlook for 2015
With 2015 now under way the economists and so called property experts are looking ahead at what could be an interesting year for the UK housing market. 2014 was a boom year for property prices particularly across London and the south east which saw record annual increases even though the market saw a lull in the Autumn which has carried on until January. The UK economy has seen the crisis unfold in the middle east along with the spectre of potential interest rate hikes not seen for six years. Interest rates have remained at record lows for the last six years and there is every likelihood that they will start to go up towards the end of next year according to some economists.
The upper end of the UK property market has been awash with russian buyers who have been plough vast amounts of cash into prime residential homes in London. This looks at though it will now come to an end with the Russian economy now gong into reverse due to a number of factors not lease that the price of oil has halved over the last six months.
This will impact on London house prices that have already seen a drop of the last couple of months as buyers have taken stock of the high prices. Lower oil prices may be good for the UK economy according to many experts but it will also cause job losses for tens of thousands of UK workers particularly in the north as jobs in the oil industry go. There are already concerns that thousands of businesses are already at risk and will go bankrupt if the price of oil does not increase.
Most of this bad news is likely to impact on house prices north of the border as the scottish economy relies so heavily on revenues from oil. It will also impact on buyers looking at the high end of the London market. House prices in London are very high and some would argue that they could do with coming down.