Election 'could impact on house prices'

Posted: 16 Sep 2009 11:59:49 GMT

The fact there will be a general election next year could have an effect on house prices, according to National Association of Estate Agents (NAEA) president Gary Smith.

Whatever the outcome of the national ballot, elections are often followed by a "tightening of the belts", he said.

Explaining the theory further, Mr Smith commented: "In that sense, there could be a period where house prices are not increasing as much as they should."

However, the NAEA president added that the housing industry may head in a different direction and suggested that the low Bank of England interest rates could encourage people to try and make money via the buy-to-let property market.

His observations came after The Ernst & Young ITEM Club reported this week that property prices in the UK will not recover to their autumn 2007 peak for at least another five years.

Apparently, the recent house price increases - as reported by Nationwide Building Society and Halifax, among other financial commentators - cannot be sustained past spring of next year.


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