The General Election is stopping cautious sellers putting their homes on the market.
House price growth accelerated during
March as uncertainty ahead of the General Election led to a shortage of
homes for sale, research showed today.
The number of homes being put on the market fell for the second consecutive month, as potential sellers sat on their hands, according to the Royal Institution of Chartered Surveyors.
New property sales and enquiries from buyers also flat lined during the month, although the lack of interest was not enough to offset the fall in vendors.
Instead, the mismatch between supply and demand pushed prices rapidly upwards in most parts of the country.
Overall, 21 per cent more estate agents reported a rise in house prices than those who saw a fall, up from a balance of 15 per cent in February.
At the same time, 15 per cent more estate agents expect property values to continue to rise over the coming three months, compared with 10 per cent in February.
Price expectations for the coming year also reached a 10-month high, with estate agents expecting prices to increase by 2.5 per cent.
The number of homes being put on the market fell for the second consecutive month, as potential sellers sat on their hands, according to the Royal Institution of Chartered Surveyors.
New property sales and enquiries from buyers also flat lined during the month, although the lack of interest was not enough to offset the fall in vendors.
Instead, the mismatch between supply and demand pushed prices rapidly upwards in most parts of the country.
Overall, 21 per cent more estate agents reported a rise in house prices than those who saw a fall, up from a balance of 15 per cent in February.
At the same time, 15 per cent more estate agents expect property values to continue to rise over the coming three months, compared with 10 per cent in February.
Price expectations for the coming year also reached a 10-month high, with estate agents expecting prices to increase by 2.5 per cent.
Simon Rubinsohn, RICS chief economist, said: “The boost that was given to the housing market by the Help to Buy scheme has begun to dissipate and activity levels have slipped back.
“Even more worrying are the tentative signs that price momentum could be set to pick-up once again as the supply of stock to the market continues to fall.
“Anecdotal evidence does suggest that election uncertainty may be having some impact on the market, but underlying the trends visible in the latest survey is a very real housing crisis which will urgently need to be addressed by the next government.”
House price growth continued to be strongest in Northern Ireland during March, with estate agents in the region also having the highest price expectations for the coming three months.
But price expectations in Wales and Scotland were much more moderate.
In London, where the market would be most affected by a possible mansion tax and removal of non-dom status, both the number of enquiries from prospective buyers and the level of sales agreed fell for the eleventh month in a row.
At the same time, 24 per cent more estate agents in the capital reported a fall in the number of properties coming on to the market.
Earlier this week, the Council of Mortgage Lenders reported a fall in buyer numbers during February.
“Even more worrying are the tentative signs that price momentum could be set to pick-up once again as the supply of stock to the market continues to fall.
“Anecdotal evidence does suggest that election uncertainty may be having some impact on the market, but underlying the trends visible in the latest survey is a very real housing crisis which will urgently need to be addressed by the next government.”
House price growth continued to be strongest in Northern Ireland during March, with estate agents in the region also having the highest price expectations for the coming three months.
But price expectations in Wales and Scotland were much more moderate.
In London, where the market would be most affected by a possible mansion tax and removal of non-dom status, both the number of enquiries from prospective buyers and the level of sales agreed fell for the eleventh month in a row.
At the same time, 24 per cent more estate agents in the capital reported a fall in the number of properties coming on to the market.
Earlier this week, the Council of Mortgage Lenders reported a fall in buyer numbers during February.
The group blamed uncertainty ahead of the General
Election for exacerbating seasonal factors, leading to a 16 per cent
fall in the number of mortgages advanced to people buying a new home.
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