Run up to election causing property market cool down
Nearly a third of property sales in the UK are being purchased by first time buyers but in the run up to the general election the property market is said to be cooling.
In February around 30 percent of the total house purchases were made by people who were getting a foot on the property ladder for the first time. According to the most recent survey carried out by the National Association of Estate Agents (NAEA), this was the highest amount it has been since September 2014.
The data from the survey also revealed that 46 percent of NAEA members have noticed a cooling on the market as the general election in May draws near. Also according to the data, 27 percent of NAEA members believe that the election will have the greatest impact on the property market in 2015.
The findings also reveal that the demand for property has increased. In January the number of house hunter’s registered per NAEA member branch was 353 whereas in February it was up to 366. Supply of homes is also slightly down from 44 to 43 properties per branch which highlights a problem that is doubtful to be solved anytime in the near future as the demand for housing is significantly higher than the supply.
In February the total number of house sales agreed stayed the same as previous months, with 8 going through per National Association of Estate Agents member branch.
The managing director of NAEA Mark Hayward commented on the survey results saying
“It’s clear from the findings in the report that things are starting to ease for first time buyers, which could be down to reduced property prices or more accessible funding, especially following December’s stamp duty reforms,”
“We will all be waiting with bated breath to see if the first time buyer figures increase following the new Help to Buy ISA, and whether we see real momentum in the market. It still remains notoriously hard to get cut through in the property market, especially for first time buyers, so any green shoots are encouraging,” he continued.
Hayward concluded saying
“Demand is still vastly outweighing supply in this country, so it is clear something needs to be done to aid this growing problem. It will be interesting to see the outcome of this year’s General Election, but whoever wins it is vital that building more affordable homes is top of their agenda,”
Agents believe that the Conservative party’s pledge to construct 200,000 more houses will have the most paramount impact on the property market. However, on the other hand, 57 percent of estate agents believe that the Labour party’s proposed Mansion Tax will have a harmful impact on the market.
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