Some of the biggest names in housebuilding, investment and estate agency told us their thoughts about the UK property market in 2014. In the fifth part of our series of articles with their hopes and wishes, read on to see how they think it will develop throughout the year, what's in store for first-time buyers in particular and what they would do if they were made Chancellor of the Exchequer for the day.
What do you think will happen in the UK residential property market in 2014?
David Bentley, partner at Bidwells in Cambridge: "The housing market in 2014 will continue to improve and gather momentum with continued 'hotspots' bubbling over with activity. Cambridge is likely to be a prime example. Borrowing will remain cheap...but unless stock levels are considerably replenished, both through new-build and second-hand (particularly in prime locations), house prices will continue to rise."
Paul Teverson, head of public affairs and public relations at McCarthy & Stone: "Prices will increase and the debate about raising the base rate will intensify as the year progresses. Interest rates may rise earlier than the anticipated mid-2015 date to cool things down. Price increases will still see significant regional variations, with London continuing to outpace the rest."
Lionel Stoll, sales negotiator with Paramount Properties: "The continued lack of supply versus the ever-increasing demand from both overseas- and UK-based buyers will assist in increasing the prices further. The outlook for the UK economy is also good which will further stoke interest to invest in a culture of homebuying in the UK."
Marc von Grundherr, lettings director at Benham & Reeves Residential Lettings: "My prediction is that central [London] and surrounding areas rents will stay flat with some small increases but certainly not strong rises. This is for two main reasons - corporate budgets are forecast to be held at the current levels and increasing supply coming on stream. Sales prices will continue to rise with continued low interest rates and weak sterling. These combined will lead to further crushed yields."
Adam Day, director of online estate agent Hatched.co.uk: "We predict that house prices will rise at a much quicker rate than in 2013 and by the fastest rate since the housing crash. We believe that house prices could rise by as much as 7% across England and Wales, with double-digit increases in London and the South East. If you are going to buy, this is the time to do it!"
Will the planned increase in housebuilding, along with better mortgage choice, give first-time buyers (FTBs) more hope in 2014 than in 2013?
Mark Powell, sales director at Bloor Homes: "I believe so although the commercial pressures on land supply may dictate the type of properties that developers commit to. Clearly there has been an historical issue with FTBs raising the necessary means to buy, which can, again dictate the type of properties that developers commit to."
Edward Hall, head of agency at the Marlborough office of Smiths Gore: "There is no doubt that FTBs will continue to have to meet higher borrowing criteria to satisfy banks and building societies. That said, the Help to Buy schemes are taking off and will boost both the new-build and resale housing markets. Rurally, housebuilding is more sporadic than more urban areas and in Marlborough especially what is required is high-specification, rather than high-density building development."
Katie Bond, acting director of Notting Hill Home Ownership: "I think there will be more hope for FTBs in 2014. Notting Hill Home Ownership alone will build over 500 affordable Shared Ownership homes across 15 London boroughs next year, offering purchasers affordability and choice. A competitive mortgage market also means if buyers can find the money for a deposit they can get some great rates, but people should be mindful that interest rates are likely to go up over the next couple of years so people need to be confident they can still afford their mortgage payments."
Chris Endsor, chief executive of Miller Homes: "Yes, definitely. Most UK housebuilders' product offering is wide and caters for FTBs, as well as family purchasers so there is good choice available. Mortgage availability is improving but the key to success is for all lenders to get behind Help to Buy 2 - the 95% mortgage product - as well as continuing to support the equity share scheme."
If you were Chancellor for the day and could implement one change to the property market in 2014, what would it be?
Gary Ennis, southern regional managing director for Barratt Homes: "If I were Chancellor I would be very pleased with my success to date in pulling the UK out of the recession. The property market was a good area to support and it has brought resounding results for all. If I were given an opportunity to change something it would be to see a continuation of the positive planning changes we have seen and to continue to speed up the planning system so that we are able to build more homes.
Brendan Cox, managing director of Waterfords estate agents: "I think a concession should be made on stamp duty as I believe it is still a hurdle for a full recovery. I wouldn't abolish it but I would reduce the thresholds."
Douglas Sleaper, sales director of Townends Estate Agents: "A strong first half of the year with prices rising as supply fails to meet the demand from buyers with a slightly quieter second half possibly with prices dipping back to lose some but not all of the gains seen earlier."
Alistair Brown, director at Tylers Property Partnership: "Rationalise the stamp duty bands to factor in increases in capital values since they were introduced over 15 years ago, we would suggest...1% from 100k to 200k, 2% from 200k to 500 etc with a possible exclusion from the tax for first-time purchasers taking a mortgage in excess of 50% loan-to-value"