In its latest quarterly market report, Strutt & Parker declares a positive outlook for the UK housing market in 2015, despite some challenges.

Alongside its retained economic advisors Volterra, the leading national estate agent is forecasting UK house price growth to be 5% in 2015. The figure in the Greater London area is predicted to be significantly higher at 9%, in contrast to prime central London where 0.0% growth is expected.

Stephanie McMahon, Head of Research at Strutt & Parker, said: “There still lies an imbalance between London and the rest of the UK but there are signs of strong recovery in the regions as buyers outside the capital look for affordability. The holding off of interest rate rises, now not expected before autumn 2015 at the earliest, is a big positive. This combined with continued wage growth - UK real wages and living standards began to recover for the first time in five years in December - and low inflation, should give the national market the momentum it needs. We should see a flurry of activity up until the autumn as buyers take advantage of the low interest rate environment.”

As part of the report, Strutt & Parker also analysed the behavioural profiles of its buyers who purchased country homes in the £2m plus market outside of London throughout 2014. It was clear that the majority were buying a large country home for their primary residence (79%), rather than for a second home (13%) or for investment (8%). This could be linked to the increasingly high cost of buying and moving – meaning that people are choosing to buy one large house rather than two smaller ones or numerous buy-to-let investment properties.

James Mackenzie, Strutt & Parker’s Head of Country Department, said: “The beginning of 2015 has seen a significant increase in new applicants registered with us looking for prime properties ‘in excess of £2m’. We are witnessing at least double the amount of potential purchasers enquiring about properties we are currently offering or are now bringing to the market. However, our viewing levels are not higher, which would indicate that there are a significant number of people who are beginning to look at moving but are waiting to see what the market has in store for this year.”

The central southern region has had a positive start to the year according to George Burnand, head of Strutt & Parker’s Winchester office, who explains:  “Motivated sellers have taken on spring early this year in light of the election, allowing a flurry of fantastic properties for sale at good prices. We have seen more properties exchange so far this year than expected, helped by the fantastic mortgage opportunities out there at the moment. Market confidence and activity remain steady.”

2014 saw a significant increase in the number of transactions compared to 2013 especially in the regions outside of Greater London. Jake Civardi, who recently joined the Winchester team, has noticed a lot of people looking to move from his old stomping ground in London. He comments: “With a London slowdown, buyers are trying to take advantage of the huge London/countryside price differential”. He continues: “The perceived election slowdown has not had any impact with good houses selling well now.”

Contact the team in Winchester on 01962 869999