UK house building firm Taylor Wimpey has said house prices are growing more slowly and that the boom which made property unaffordable is now ebbing.
The Nationwide building society recorded an 8.3 per cent rise in the average UK house price in 2014. However, forecasts of higher interest rates, coupled with the general election and fewer foreign buyers should see prices drop in the coming year. The Centre for Economics and Business Research also said it expects house prices to fall in 2015, and that London would see the biggest drop.
House builder Taylor Wimpey said despite the average selling price of its properties increasing by 11 per cent to £234,000, prices were in fact rising more slowly at the end of last year.
The firm completed 12,454 homes last year—an increase of 6 per cent on the previous year. It also started 2015 with an order book worth £1.4bn, up 12 per cent.
In a statement, the firm said: “During the second half of 2014 we saw a return to a healthier and more balanced housing market after a very strong first half of the year. The UK housing market continues to grow.”
The government’s Help to Buy mortgage-subsidy scheme has assisted many people to become homeowners and has bolstered building firms, which have made significant profits throughout the house price boom.
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