THE election has helped stir the prime property market and sparked a rise in demand and prices, according to research out today.
Prices in the top 10 per cent of the housing market rose 1.1 per cent in June, contributing to an annual growth of 4.1 per cent – more than double the average house price rise of two per cent.
Researchers put this down to the steps taken by the government to cut the deficit. “The introduction of the Lib-Con government has acted as a tonic for the prime property market,” said Andrew Smith, research director at primelocation.com.
“Despite concerns that the emergency Budget may have clouded the horizon, the property market did not fare as badly as was feared.”
London was the site of the bulk of price growth, with the average property price in the top quarter of the market growing by 1.5 per cent to £1.1m last month.
Kensington & Chelsea is still the most expensive area to buy a house, with the top quarter of properties rising by 10 per cent last year to an average price of £2.68m.
This compares to a 1.5 per cent jump in Hackney, the cheapest borough for prime real estate, where the average top quarter property now costs around £616,000.
Conversely, sellers in East London rushed to join the market (17.5 per cent more stock this month) in an attempt to cash in on anticipated price rises following the relaunch of the East London Overground line.
The research also suggested that the incoming rise in the stamp duty threshold might push plum properties onto the market sooner than sellers had hoped.