30 April 2010

The approaching general election is causing some home buyers and sellers to delay their property decisions, causing a slowing of growth in the UK housing market.

Property data company Hometrack has claimed that although the housing market is losing some momentum, house prices are still rising, with an annual increase of 1.8% in April. This is the fastest pace of growth since January 2008, with the figures received from a survey of estimated selling prices from estate agents and surveyors across the UK.

Monthly property price growth has slowed to 0.2% in April, compared with 0.3% in March, with different regions of the country reporting different figures. London saw a 0.6% increase, whereas Yorkshire and Humberside reported a 0.1% price fall. The number of properties coming onto the market in England and Wales also outstripped demand from new buyers for the third month in a row.

Hometrack has also reported that buyers were taking longer to commit to properties, with the number of viewings required per sale increasing. The general election is being factored as a reason behind this buyer uncertainty, which is contributing to the slowing rate of agreed sales.

Richard Donnell, Hometrack director of research, quoted: “There has been evidence for some months that the supply/demand balance has been changing steadily, but the buyer slowdown has been exacerbated by the announcement of a May election.”

Source: Propertywire


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