Wednesday 05 May 2010 | House Prices feed

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Election slows down housing market

The property market has experienced a slowdown ahead of the general election, one of Britain's leading property agents has said.

 

In a brief trading update on Wednesday, Savills, famed for selling upmarket homes, said there has been "some evidence of slowing in activity in UK markets". However, it stressed this should be seen in the context of "a stronger than anticipated performance over the first quarter".

Analysts have warned transactions and prices could slow in residential and commercial property markets as potential buyers wait for the outcome of the election. After the election there is also the prospect of a hung parliament and new economic uncertainty.

However, data from Nationwide shows house prices rose 1pc in April, the same as March, and last month the chief executive of Persimmon, one of the UK's biggest housebuilders, said the election was "not having a fundamental effect".

The housing market has recovered sharply since early 2009 and Savills, which operates across the world, said its UK residential arm has delivered a "good trading performance" so far this year.

Rightmove, the property website, also emphasised the improvement on Wednesday, saying March was its busiest month ever for visitors and April 6 the busiest day.

Page impressions rose 30pc to 2.6bn during the first four months of 2010, and the number of estate agents on the website rose by 5pc over the period to 10,900 after some lettings-only agents decided to start selling homes again as the market improves.

 
 
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Edmund Conway
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