CEBR predict property price fall in 2015

The CEBR predict that UK house prices will decline in 2015, dragged down by a slump in the London property market.

The think-tank propose that 2014's growth of 8.8% will be followed by a 0.6% drop in 2015.

They propose the drop will result from a slowing of the prime London market and the uncertainties of an election year. 

London will see the most severe of the falls, expected to be 3.3%, to reflect what has been a period of high growth in the capital and a changing global situation impacting on the demand from foreign buyers. 

The CEBR also factor in the potential interest rate rises from the Bank of England towards the end of the year, although expected to be gradual, buyers are still likely to react by postponing purchases.

CEBR's Economist, Nina Skero, comments: 

“The new stamp-duty system lowers tax payments for 98% of home buyers and will give a slight boost to the market, but not enough to prevent a price drop.

“The uncertainty surrounding May’s election, proposed changes to property taxation, and reduced foreign demand are already bringing down house prices.

“Subdued price rises or modest declines also reflect a correction in the housing market after a period of very strong price growth.”

Read the CEBR prediction of 'House Price Fall'

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