The UK property market: 2014 review

As the year draws to an end, predictions are starting to take shape for the property market's prospects, with the likes of Savills and Marsh & Parsons both forecasting solid years overall after a shaky start. But before we even get to 2015, how has this year performed and where does the property market sit now?

Generally speaking, it has been a strong year for property, with the latest report from LSL Property Services stating that it has been the best 12 months since 2005, with economic recovery and positive sentiment feeding into strong demand and subsequently lots of activity.

Residential

The residential property market has generally had a very strong year, and although price rises have started to cool off towards the end of the year, they have been climbing for the majority of 2014.

In November, the Acadata index showed that property prices across England and Wales climbed by 0.8 per cent on average.

This took the average house price to more than £280,000 for the first time ever, and meant that the annual rate of increase stood at some 11.3 per cent, a strong year indeed for the sector.

The rental market has also enjoyed a strong 2014, and the most recent Home Let Index indicated that rental costs were up by 8.7 per cent month-on-month in November and 11.7 per cent compared to the same month a year earlier.

Despite a swelling of new properties coming into this market, demand has remained high throughout the year, which has given landlords a boost in confidence.

Commercial

The commercial market has lagged behind residential property in recent years, but this hasn't been the case in 2014, as it has rebounded to become the most profitable asset of the year.

According to Lloyds Bank, up until November, returns for the commercial property sector sat at 20.1 per cent, which pushed it ahead of last year's best asset, equities, where gains were 12.8 per cent for 2014.

Source: www.invezz.com