Activity in the capital had been subdued compared to previous levels. But the Conservatives’ general election victory will bring confidence to the market, according to Stephen Johnson, MD of the Shawbrook Bank’s commercial mortgages division.

Prices in central London areas dropped 4.3% in the 12 months to March 2015, something Johnson blames on political uncertainty.

However, this month’s election result, which will see minimal new regulations introduced, have increased confidence.

“The three commonly cited factors were the impact of the stamp duty changes, the Labour manifesto around non-domicile tax and the potential effect of the mansion tax,” he said.

“Clearly, all three elements of this are political in nature and fuelled uncertainty and doubt for investors across the prime and central London property sphere.

“The market has been nervous about this over the past year, with the mansion tax a well sign-posted initiative, the pursuit of non-domicile citizens a more recent development, and the stamp duty changes casting a wet blanket over the ‘engine’ of the UK property machine.”

Johnson said any changes to the property market were unlikely to deter investors.

“We believe a Conservative majority government means business as usual for the property market,” he added.

“We’re already seeing stock market confidence in the sector returning and anticipate that investors will quickly follow suit. With regards to stamp duty, given that the changes are relatively favourable for lower value properties, the vast majority of the buy-to-let market has actually benefitted from the change – with only properties over £1m seeing an increase.”