UK house prices: Demand for homes drops due to uncertainty around the General Election

 
Shruti Tripathi Chopra
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Housing Market Begins To Slow In UK
Buyers and sellers are adopting and "wait and watch" strategy (Source: Getty)

The demand for homes stuttered in April due to uncertainty around the General Election, according to the National Association of Estate Agents (NAEA).

The number of house-hunters registered per estate agent branch fell in April, the property body found. There were 381 house hunters per branch in April compared to 397 in March and close to 425 in January and February each.

Supply of homes also fell last month with 36 properties available to buy per branch in April versus 39 in March.

Read more: UK housing market remains steady ahead of the General Election

The number of sales agreed per branch fell from 10 in March to eight in April, while the proportion of sales made to first-time buyers stayed the same at 25 per cent.

The NAEA said that buyers have put their plans on hold until the result of the General Election is clear.

Mark Hayward, chief executive, NAEA Propertymark said: “Buyers and sellers alike are recognising this and adopting a ‘wait and see’ strategy to decipher how or if the value of their existing or future homes will be affected.

“However, despite the fact that increasing housing stock is playing a part in the election campaigning, more often than not we find these pledges are unachievable and turn out to be empty promises. It’s therefore important that the market doesn't totally stall as this could trigger an unintended domino effect, which we could still feel the effect of years later before supply increases.

"A business as usual approach will ensure house-hunters are met with a healthy supply of properties to view, and sellers get a fair price and a good buyer.”

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