The market in London, especially in prime central areas, is already slowing ahead of the spring general election according to Winkworth.
But factors such as stricter lending requirements because of the Mortgage Market Review and the strength of sterling lessening the attraction of London property to international buyers, are also dampening activity says the franchise giant.
It forecasts 2015 to be a mirror image of this year, with a subdued first half followed by a pick up both in terms of prices and transactions.
We anticipate that prime central London will continue to be most affected in coming months, with political uncertainty and proposed legislation for a mansion tax leading to a price fall of five per cent in the first half of next year says the agency's official forecast.
Changes to the taxation of overseas investors and a less accommodative exchange rate lead us to believe that, although the market may pick up slightly after the general election, prices will be flat in central London for the year as a whole.
Winkworth says suburban London is expected to be impacted as the rapid growth seen in 2014 slows, helping to rebalance supply and demand. Again the first half of 2015 will be quiet but prices will then rise cautiously by about two per cent by year end.
Transaction levels in 2015 should remain at a similar level to those of 2014.
Comments
The election does often seem like an easy and lazy excuse to use for a slowdown. Maybe the market is just slowing down Which, in Prime Central London, is probably no bad thing for the majority.
The market is slowing down, or already has, it is not because of the election.