Research

London Residential Quarterly Q3 2014

Q4 2014

The improvement in sentiment regarding the global economy through the first half of 2014 has now been succeeded by an increase in political uncertainty. The IMF recently revised its 2015 global growth forecast downward as some risk has returned to advanced economies in the form of geopolitical issues and weakness in the Eurozone.

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The improvement in sentiment regarding the global economy through the first half of 2014 has now been succeeded by an increase in political uncertainty. The IMF recently revised its 2015 global growth forecast downward as some risk has returned to advanced economies in the form of geopolitical issues and weakness in the Eurozone.

The IMF now expects the UK to be the fastest growing large developed economy in 2014, overtaken only by the US in 2015. The FED has continued to hold off on any tightening of monetary policy. It has been argued that this is partly down to remaining uncertainty over the country’s economic performance. However, the recent resurgence in strength of the dollar is becoming a threat to the US export market and growth outlook. Uncertainty is also creeping back into the Eurozone as GDP growth figures for Q2 show the Eurozone’s recovery has begun to stutter. Inflation in the world’s second largest economic bloc is also at its lowest point in four years, and is a stark reminder of the pressures of deflation. Slower expansion also continues to be an issue in emerging economies, and is indicative of the downside risks that still remain in a post global economic crisis.

National property market
The recent strong performance of the housing market is beginning to steady and level out. The Nationwide House Price Index saw considerably weaker growth in Q3 compared to the previous quarter. The Index now stands 10.5% up from the same quarter in the previous year, although it should be noted that this still represents significant annual growth in prices.

Read the full Residential London Quarterly Q3 2014.