Property market losing momentum in run up to election

According to recently released industry figures the property market has lost momentum during the month of April, with property purchasers exercising increased caution in the run up to the election. The data was released by property company Hometrack, which found that would be buyers were taking longer to commit to the purchase of a property in the current environment.

This data has been backed up by estate agents, who have stated that for the third month in a row the number of viewings needed per property has been rising, as it has become more difficult to shift the properties that they have on their books. For the third month the rate at which properties were being put on the market outweighed demand for the properties according to the data.

Whilst the value of property had been increasing lately the current situation has reduced the upward trend seen with house prices in England and Wales. The figures showed that the number of properties that had come onto the market for the month had increased by 3.7 percent but the number of new would be buyers registering with estate agents had only increased by around 1 percent.

A major factor that is thought to be contributing to the extra cautions that potential buyers are exercising when it comes to purchasing property is the up and coming general election, which at this stage could be anybodies call in some opinions, and could result in a hung parliament.

Hometrack stated: ‘The supply of homes for sale continues to outstrip demand. This is a trend that has been evident for the last quarter, but lies in stark contrast to the final months of 2009, when buyers far outnumbered the supply of properties for sale. As the supply of homes for sale continues to outpace demand, so the impetus for price rises is set to wane.’