Market Insight

At Phillips Harrod we are expecting a continued slowdown in the sales market for the early and middle part of 2015 in the run up to the general election that could result in more tenants waiting for prices to move and more would-be sellers bringing stock to the rental market. Uncertainty over the outcome of the general election is likely to boost the corporate lettings sector and London property prices will ease into a slower rate of growth than in previous months whilst the demand for corporate lettings and relocations will ensure increased volumes of lettings transactions throughout the year. Therefore we expect the rental market to be more active in 2015 than 2014. Those within the market for Prime London property who are driven by their work and/or education requirements are
either already long term rental tenants or are renting whilst they bide their time before purchasing their own property. Such an effect will demonstrate a strong demand in the prime rental market thus forcing prices to increase and stock to reduce whilst still having a number of active tenants who are both domestic and international ex patriates. Should interest rates rise during 2015, we feel that it will have a minimal impact on the housing market. If adjusted, rates are likely to increase by 0.5%. Essentially we believe that the prime London rental market looks
bright for 2015.

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