In the lead up to the election, we expect the rhetoric around a mansion tax to suppress the potential for further price growth in the prime housing markets. We believe values are likely to plateau, particularly in locations with a high concentration of properties over £2 million as buyers remain cautious.

In the absence of a full-scale mansion tax, the potential for price growth after the election in the prime markets remains. The commuter zone offers good value relative to London for those reliant on the capital for employment. Beyond the commuter zone, where the price gap is even greater, we expect buyers to relocate for lifestyle reasons and the prospects for a wider improvement in regional economies.

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Taken from
Residential Property Focus Q4 2014