Election 'likely to cause uncertainty in housing market'

Posted: 20 Apr 2010 10:27:58 GMT

The impending general election is likely to cause a degree of uncertainty in the housing market, it has been claimed.

Lucian Cook, director at Savills, says the property sector is predicted to make a slow recovery from the recession, as homeowners face "significant" mortgage constraints and house price volatility.

Furthermore, he says new figures from Rightmove.co.uk - which reveal that the average asking price for homes in the UK has risen by 2.6 per cent in April - are "surprising".

"If you look at stock levels compared to new applicant levels, generally I would have thought there is some downward pressure on prices rather than upward pressure," adds Mr Cook.

According to the statistics, house prices are now six per cent higher than they were a year ago, with the average property currently being put on the market for £235,512.

Zoopla.co.uk recently reported that confidence in the housing market recently reached a two-and-a-half year high, with 81 per cent of people predicting property values will rise in the coming six months.

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