The UK housing market started last year on fire and kept burning into the summer months. After a slight slowdown in the fall months, the year ended. House prices rocketed upwards in the first and second quarters due to some strong fundamentals which were churning and creating high demand, thus creating higher house prices. Remortgage activity was also in high gear until the end of the second quarter.  All this activity within the housing market was taking place, whilst another story brewed in the background. The story getting attention was the fate of the bank rate.

High profile names linked to the UK housing market have made several predictions for the sector in the year 2015. A prevailing idea is that the activity within the housing market will be quite reliant on the results of the general election coming soon. The other popular idea floating among industry insiders is that the bank rate will more than likely maintain its historical low through the end of the year.

Both Ray Boulger of mortgage broker John Charcol and housing expert Henry Pryor believe the housing prices will not increase by a drastic amount. They are estimating the housing prices overall will go up by a minimum of 4%. This is quite the opposite effect from what occurred last year. Although many factors are working towards an environment which is right for demand to increase, there are now some factors working against it. That is the reason for such a low estimation of increase in house prices.

More accurate estimates can be expected after the results of the general election.