Following a year characterised by a slowdown in the house price surge, this week Simon Morris asks; where is the UK residential market going in 2015?
The Profitability of the UK Residential Property Market
As an independent property advisor who shows UK property investment funds how to maximise revenue on their property portfolios, Simon Morris understands the attraction of residential property investment.
Catch the residential market at the right time and you can capitalise on it’s momentum to produce a long-term revenue stream. This has led the property expert to ask whether 2015 is the right time for UK property investment funds to capitalise on the UK residential property market.
UK house prices 2015: Where the Property Market is Going
The issue was explored recently by an article on International Business Times. ‘UK house prices 2015: Where the property market is going’ suggested that despite a slowdown, the UK’s residential market should continue to prove lucrative in 2015.
It cited data from the Nationwide house price index that stated that year-on-year, average value growth in house prices peaked in June at 11.8%. It slowed down since the middle of the year to record it’s lowest measure last month; 8.5%. Meanwhile, statistics from the Office for Budget Responsibility (OBR) showed that on average, house price growth measured 10.2% across 2014.
“The Market Takes a Breather.”
The same data went on to reveal that the rate of growth will stay strong, but drop to 7.4% in 2015. This observation was backed up by the head of residential research at estate agency Savills, Susan Emmett.
Emmett commented to the International Business Times that “we’re expecting a little bit of a slowdown in 2015.” She went on to say that “that’s really as the market takes a breather. We’ve seen a lot of growth over the last 18 months, a lot of it driven by London, and we think that affordability pressures are tight.”
Take the Safe Approach to Property Investment
In other words, analysis seems to suggest that despite slower progress, the UK residential market could continue to prove profitable for UK property investment funds in 2015. Yet for order for it to do so, funds need to take the safe approach to property investment.