31 Mar

General election preparation impacts on market

General election preparation impacts on market

The run up to the forthcoming general election is likely to lead to a cooling in the housing market, according to many estate agents.

A survey from the National Association of Estate Agents (NAEA) reports that many agents had already experienced a downtown in sales as the May election approaches and people are uncertain about buying a new home.

Overall, 27 per cent of NAEA members believe the election will have the biggest impact on the UK's housing market in 2015.

Last month saw 30 per cent of house sales involve people stepping on the property ladder for the first time. Estate agents also reported an increase in demand, with the number of new house hunters registering per branch reaching 366, compared to 353 in January.

However, there was a slight fall in supply, with the average number of properties coming on the property standing at 43 per branch, compared to 42 in the previous month.

Mark Hayward, NAEA managing director, explained it appears conditions for first-time buyers are becoming more favourable, especially following the introduction of new stamp duty reforms.

But it is not yet clear whether other planned initiatives will help them further to purchase their first home.

"We will all be waiting with bated breath to see if the first time buyer figures increase following the new Help to Buy ISA, and whether we see real momentum in the market. It still remains notoriously hard to get cut through in the property market, especially for first time buyers, so any green shoots are encouraging," added Mr Hayward.

The survey also revealed that many agents believe building more homes will have the best impact on the UK property market, with less support for Labour’s proposed Mansion Tax helping to contain residential prices.ADNFCR-1222-ID-801781864-ADNFCR

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