House prices in London expected to remain static in 2015

While house prices in London have continued to grow in 2014, the rate of increase has gradually slowed and is expected to freeze in 2015, according to industry experts.

Elsewhere in the UK, average house prices reached £133k in September, still well below the £158k average in 2004.

The news highlights the skew which London places on average house prices across the UK, and although average house prices are rising on average by 3.1% per month, it could take a further five years before we reach the pre-crisis average.

One factor which is hampering the housing market at the moment is the continued uncertainty over rises in interest rates.

There had been suggestions that interest rates would begin to rise from record lows towards the end of 2014, although the Bank of England is still showing no real signs of shifting from the current 0.5%.

In London, the prices of new houses had actually started to fall, and suggests a period of caution as people wait to see how things unfold.

For those nervous about rising interest rates, lenders such as Nationwide have begun to offer 10 year fixed rate mortgages for those with a minimum 15% deposit.

For expats considering how the changes to Capital Gains Tax rules due to be announced before the end of the year, the predicted slowdown in the market will come as relatively good news as they decide on whether to sell their property before they may be required to pay tax on gains from April 2015.