Property market boom fizzles out towards end of 2014
As already mentioned in out previous posts the boom has certainly fizzled out of the property market over the last couple of months. Just as well I can hear you say as the market was seriously overheating and was heading for a burn out.
It would seem that the Bank Of England's decision to change the rules in the mortgage market making it harder to get a loan has done the trick and the market has had a softish landing.
Everybody expects in to pick up again in the spring but should take note that general election years is normally a slow time for the property market and we could see house prices soften during that period. Some parts of the UK that saw th biggest price increases such as Cambridge and Aberdeen have now fallen back but Cambridge house prices still end the year up 13% higher. Whilst price growth has slowed to a crawl, prices are still up considerably over the last 12 months.
House prices saw a slight drop over the last 6 months as buyers waited to see whether Scotland would become independent. Many homeowners were waiting to see how the referendum was going to be decided and were not out buying homes. This had a negative effect on house prices but the negative affect of the slump in oil prices may also affect prices in areas such as Aberdeen.
The effect on the oil industry is now being felt and it is feared many people will lose their jobs if the oil price does not rise. This will have an impact on house prices as there will be fewer buyers and there may well be some homeowners that may be forced to sell.