The UK housing market began the year 2014 on fire. Low interest rates, low unemployment, and a high level of consumer confidence led to many original loan applications along with many house owners deciding to remortgage and cut their monthly mortgage payment. Construction firms were also booming. Along with growing incomes, comes the continued increase in demand for adequate housing. Construction of new homes was evident everywhere, especially in the areas right outside the capital city of London.

Housebuilders and estate agents are seeing a different overall picture as the year 2015 gets underway. The forecast is casting a dark shadow over the market and many firms are bracing themselves for slower times in the immediate future. London and the South East have been pegged for fewer construction jobs on the horizon, and with that comes lower house prices.

Anthony Coding with Jefferies, commented on the latest forecast for construction, saying: “Negative newsflow on UK mortgage approvals, UK housing transactions, weak house-price data and lower UK GDP growth will lead to share price weakness in the UK residential sector”

He added: "The weakness will continue into the second quarter because of uncertainty caused by the UK national election in May.

“We also believe that house price growth will slow significantly during the first half and may even decline in some parts of London and the South East, while there is uncertainty around the outcome of the election and the prospect of a new mansion tax should power change hands.”

The general election could have an impact on new housing starts, according to some housing experts.