House hunters faced with restricted choice could soon find that they have significantly more homes to choose from as the result of a post-Election surge in homes for sale, according to Righmove.
The property portal is forecasting a sharp rise in the volume of residential properties set to come onto the market in the coming weeks, now that the Election uncertainty is over.
In the three months after the May 2010 Election, the number of properties coming to market rose by 17 per cent compared to the previous three-month period, Rightmove said.
“This is an election-driven price stall which gives some buyers only short-term relief from the back-drop of a long-term housing shortage, and many estate agents are now reporting a resurgence in interest following the surprise election result,” said Miles Shipside (left), Rightmove Director and Housing Market Analyst.
He pointed out that the threat of Labour’s proposed mansion tax on homes valued at £2million-plus had “put a brake on the market”, but believes that “their removal gives a reason for a rebound in activity and prices.”
Mr Shipside added, “Buyers should note that there is often a surge of property supply after an Election, as those who have held off coming to market decide to take the plunge.
“Many potential sellers have held back expecting a period of hung-parliament uncertainty, but they could now decide to catch the late spring market.”
A general housing shortage has been identified as the main problem holding back the property market by property professionals surveyed by myhomemove, the conveyancing firm.
Some 90 per cent of those surveyed believe the market is being held back and a shortage of stock was cited as the prominent cause. This also suggests that improved confidence from sellers in the wake of the decisive Election result could ensure increased stability and predictability that will deliver more confidence, pushing up the number of property sales.
It is widely agreed that significantly more new homes need to be developed annually to help alleviate the chronic shortage of properties available, with 38 per cent of respondents stating that a target of building 200,000 new homes per year was achievable.
The decisive election result could provide a confidence boost to consumers that will mean more properties are put on the market,” said Doug Crawford (right), CEO of myhomemove.
“The main housing policies outlined by the new Conservative Government in its manifesto are, for the most part, popular within the industry. The question now is whether the Government can deliver on its promises and how quickly it can do so,” he added.