The post-election surge of homes being placed onto the market has begun, with would-be buyers set for more homes to choose from in the coming months.
Figures from Rightmove suggest that election uncertainty led property prices in England and Wales to drop by 0.1% in April. However, encouragement can be taken from statistics taken from the months surrounding the last election campaign.
Rightmove said that in the three-months following the 2010 election campaign, the number of properties on the market rose by 17%, in comparison to the three-months prior to the vote.
Miles Shipside of Rightmove, said that the slight slowdown in property prices recorded in April was an, ‘election-driven price stall which gives some buyers only short-term relief from the back-drop of a long-term housing shortage and many estate agents are now reporting a resurgence in interest following the surprise election results.’
Mr Shipside continued by saying that, ‘the underlying supply/demand imbalance has meant the election uncertainty has not had a negative price outcome in seven out of ten regions in the country.’ He continued by stating that, ‘having been faced with an all-time asking price high in April of £286,133 nationally, any drop is welcome to those at the upper end of the stretched affordability curve.’
As Shipside notes, only three regions in England and Wales recorded a dip in asking price values. These regions were London, the North East and Yorkshire and the Humber. However, this was enough for the average overall price of a property to fall by £242 to £285,891, the first fall in May since the last election.
Surge in houses on the market expected
Shipside commented that, ‘election uncertainty and particularly the threats of financial penalties to landlords and those with properties valued at over £2 million put a brake on the market and their removal gives a reason for a rebound in activity and prices.’ Furthermore, he added that, ‘buyers should note that there is often a surge of property supply after an election, as those who have held off coming to market decide to take the plunge. Many potential sellers have held back expecting a period of hung-parliament uncertainty but they could now decide to catch the late spring market.’
The rise in properties becoming available on the market will hopefully ease the largest shortage of properties for sale in almost six years, as highlighted by the latest report from the Royal Institution of Chartered Surveyors.
Simon Rubinsohn of RICS believes that, ‘alongside an increased flow of second hand stock, it is absolutely critical that new government focuses on measures to boost the flow of new build.’