PropertyMay 30 2017

Housing demand drops as election uncertainty kicks in

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Housing demand drops as election uncertainty kicks in

Demand for housing dropped in April as political uncertainty led would-be homebuyers to adopt a more cautious approach to the market.

The average number of house-hunters registered per estate agent branch declined from 397 in March to 381 in April, according to NAEA Propertymark’s (National Association of Estate Agents) latest Housing Report.

The figure marks a further fall from the 425 house-hunters per branch witnessed in January and February.

NAEA Propertymark claimed the trend was probably due to the uncertainty triggered by the snap General Election starting to take effect, as buyers put their plans on hold until the result becomes clear.

There was also an 8 per cent fall in the number of properties available to buy per branch, from 39 to just 36 – the lowest level since April 2016.

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 remained the same at 25 per cent.

Mark Hayward, chief executive, NAEA Propertymark, said: “Periods of political uncertainty tend to halt activity in the housing market, and this is exactly what we’re seeing this month. 

“All of the main political parties have outlined significant housing promises in their manifestos and we’d hope to see these policies rolled out in the new government’s first six to 12 months in Parliament.

“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.”

Bob Riach, owner at Scunthorpe-based Riach Financial Advisers, commented: “Round our area it is really busy. I have done two mortgages this morning and have another three to do today. It has been like this for about 2 months.

“We have seen no impact from the election at all, and we are seeing properties moving quite fast as well. These are national statistics and are affected more by the London area.”

simon.allin@ft.com