The property market is expected to surge in the coming months, thanks to the election of a majority government.
Property portal Rightmove has suggested the housing market will pick up in pace now the election is out of the way, following a small monthly fall in May.
Average monthly asking prices are down by 0.1% (-£242) to an average of £285,891, a sharp change from the 2.1% increase seen in May. As a result the annual rate of asking price growth has dropped from 4.7% to 2.5%.
This is the first asking price fall in May since 2010, which again coincided with an election. Rightmove said that the uncertainty around who would be in government meant that sellers were having to price more aggressively.
Here's how asking prices have changed since last year:
|
Month |
Change |
|
May 2014 |
2.1% |
|
June 2014 |
1.0% |
|
July 2014 |
-0.6% |
|
August 2014 |
-2.0% |
|
September 2014 |
0.9% |
|
October 2014 |
1.4% |
|
November 2014 |
-1.9% |
|
December 2014 |
-2.2% |
|
January 2015 |
1.4% |
|
February 2015 |
2.1% |
|
March 2015 |
1.0% |
|
April 2015 |
1.6% |
|
May 2015 |
-0.1% |
Source: Rightmove
Due to the short supply of suitable property, election uncertainty only actually resulted in price drops in three regions: London (-2.3%), North East (-1.2%) and Yorkshire and the Humber (-0.1%).
[SPOTLIGHT]Miles Shipside, director and housing market analyst at Rightmove, explained: "Election uncertainty and particularly the threats of financial penalties to landlords and those with properties valued at over £2 million put a brake on the market, and their removal give a reason for a rebound in activity and prices."
Rightmove has predicted a "surge" of new properties could hit the market, pointing out that back in 2010 there was a 17% jump in the number of properties going up for sale straight after the election.
Shipside said: "The previous election saw jumps in new seller numbers in all regions of the country, with London and Wales leading the way with over 20% more properties coming to market. There may be a window for buyers to act now in this late spring market before prices rise in the next few months."
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