UK property market hit by election uncertainty

UK property market hit by election uncertainty

The price of property coming to market fell by 1.3% this month, new data revealed on Monday.

Meanwhile, there were 14.9% fewer new sellers than in the same period a year prior, Rightmove’s House Price Index revealed, the largest year-on-year drop since August 2009.

The report said that sellers were deterred by bleak price growth and the prevailing uncertain political climate.

Indeed, the nation has been granted yet another extension to its deadline to leave the European Union, only prolonging the period of political uncertainty.

Parties now prepare for the general election to be held later this year on the 12th December.

“A seasonal slump in asking prices is always to be expected at this time of year, but the drastic reduction in the number of homes on the market indicates that many sellers have already gone into home selling hibernation,” Director of Benham and Reeves, Marc von Grundherr, commented on the figures.

“With next month’s election, many sellers will no doubt choose to remain there until the dust of political uncertainty has settled in the New Year, despite buyers continuing to tough it out,” the Director of Benham and Reeves continued.

“As always, regional differences are apparent with the East Midlands the only area to buck the month on month trend of a fall in asking prices, while on an annual level we continue to see notable swings in growth across the nation.”

“This is largely down to affordability in tough market conditions and the price sellers are willing to accept with the less affordable areas seeing the largest adjustments in order to secure a buyer.”

Marc von Grundherr said: “London continues to see some of the largest annual declines in price but the granular nature of the capital’s property market means that not everyone is feeling the chill. While the market has frozen over in some boroughs, others are performing well and the varied nature of the London landscape is evident in a seven percent monthly swing between Tower Hamlets and Haringey. A one percent difference for every mile between them.”

As the nation braces itself for the upcoming general election, uncertainty prevails for the UK property market.