The latest UK Economic Outlook report from PwC looked at the prospects of the UK and London property market, projecting that growth this year would be in the region of 8% for the whole of the UK, with 13% uplift for house prices in London. The latest figures from Rightmove indicate property for sale in south west London has appreciated at pace over the last 12 months - 15% up on the previous year and 22% up on 2011 levels.
The PwC report also suggested the pace of house price growth is set to moderate over the next two to three years. It's worth remembering that London is a property market all of its own and houses for sale in south west London (http://www.winkworth.co.uk/
Below are some other factors that may also affect the property market moving into the second half of 2014:-
The Mortgage Market Review (MMR) - the MMR was undertaken to identify why the 2007-2008 property market crash happened and to put measures in place to stop it reoccurring. Reckless lending was marked as a major contributory factor and new regulations pertaining to mortgage application interviews are in place. It is thought a deeper probing of borrowers' finances and 'stress tests' - asking people to show how they'd afford mortgage repayments should interest rates rise and personal circumstances change - may stem slow the number of mortgages being approved.
Interest rates - second guessing what the Bank of England will do next with the historically-
Mortgage lendingcaps - the Financial Policy Committee has recommended a restriction on new mortgages - suggesting a limit on high loan-to-income lending. In layman's terms, this means sticking to lower income multiples when working out how much a buyer can borrow - so adhering to, for example, three times a borrower's salary and no higher. This move would temper the amount people borrow; how much they could stretch themselves when making an offer and possibly the amount of new mortgages taken out.