As the New Year of 2015 begins, many issues within the UK housing market remain up in the air due to the upcoming general election. The most significant issue in the minds of many is the future of the stamp duty and its impact on house prices in the capital city and beyond. According to Savills, houses deemed luxury homes in London (those priced at least £4m) fell in price over the course of 2014 by more than 1.2%, until the fourth quarter.

The fourth quarter proved to be more impactful, as fear of a mansion tax took center stage and created a fall in prices of more than 3%.

Lucian Cook, head of UK residential research at Savills, commented on the possible changes due to a change in stamp duty, saying: "It will take time for the effect of the stamp duty changes on prices to become clear, early signs are that the additional cost is predominantly being borne by sellers through price adjustments at a level similar to the extra stamp duty.”

He added: "Prices were easing before the Autumn Statement, so for the very top end of the market the stamp duty rise coincided with some of the froth coming off pricing earlier in the quarter.”

The drop in luxury house prices in London in quarter four is a small example of the uncertainty which currently exists in the UK housing market for the coming months. Vagueness in the timing of a bank rate increase coupled with the unstable condition now residing in the EU as a whole, makes the following months quite important to favourable times in the UK housing market.

Those looking to remortgage or take out an original loan on a house are now sitting on the fence and will more than likely wait until winter begins to close before making any moves.