Quantcast
Menu

First-time Buyers

Property market in pre-election slowdown

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
16/03/2015

The property market appears to have entered a pre-election slowdown following muted growth in March.

The latest Rightmove house price index found prices in March were 1% up on the previous month.

The firm said this was ‘muted’ compared to previous years and said the upcoming general election in May could be the cause of the slowdown.

Across England and Wales, the average house price now stands at £281,752. All areas apart from the North East saw prices grow month-on-month.

The typical asking price for a new home coming onto the market is now just behind the peak recorded in June 2014.

It warned of future house price increases as people cash in their pensions and invest in property.

Estate agents have reported an uptake in interest ahead of next month’s changes and the number of newly-listed properties was 3.2% up on last month.

Miles Shipside, Rightmove director and housing market analyst, said the market would soon move past its pre-election jitters.

“The distraction and uncertainty of an election typically force sellers to price more keenly, though this is often short-lived.

“The MMR introduced in April 2014 laid out a much needed longer-term framework for responsible lending, but within a year its dampening effects have been muted by high demand outstripping supply in many locations, and by buyers putting down larger deposits. The price of property coming to market is now just £30 off the record set nine months ago.”

However, Shipside did still warn there are not enough new homes being built.

“With new-build levels remaining low and only a small increase in properties coming to market compared to last month, the supply side is still a critical but missing part of the jigsaw if pent-up demand is to be satisfied,” he added.


Share: