Cluttons has released its UK residential market outlook for spring 2015.
The strong London economy continues to buoy demand for housing in London. However, uncertainty, particularly with respect to the outcome of the May election, has taken its toll on the sales pipeline.
Economically comfortable households feel little incentive to move, while buyers continue to wrestle with affordability and increased restrictions on mortgage lending.
We expect this cautious market to persist until post election, or more importantly until the formation of a credible government.
To an extent the rental market in the capital is benefiting from this impasse, but tents remain very cost conscious, with potential rental funds displaced into deposit savings.
Landlords remain conscious of market conditions and are showing a tendency to retain existing tenants at the same rents at renewal. We are still forecasting real rental growth for 2015, but more affordable locations outside the prime core are likely to see the better performance.