A majority Labour government could stifle any recovery in the property market, London Central Portfolio has warned.

The property investor said the market is bouncing back, particularly in terms of sales volumes and prices for existing stock in London, but said the election has left a question mark over the future.

Naomi Heaton, chief executive of LCP, said: “A working Labour majority could stifle recovery.

“Any other outcome may result in the long-awaited ‘bounce’, despite the Conservatives’ pledge to increase Stamp Duty for overseas buyers.”

Among Labour’s manifesto proposals are plans to increase income taxes for those earning more than £80,000 and to introduce a levy on overseas companies buying housing, while giving local people ‘first dibs’ on new homes built in their area.

It comes as LCP’s analysis of Land Registry data for October found average prices for existing stock were up 0.5% on a monthly basis and 1.5% annually to £259,417, while sales increased 1% over the month and were up 0.5% on last year at 792,380.

LCP said activity in the prime central London (PCL) market appeared to be on hold due to Brexit being pushed back.

Prices for existing stock in PCL increased by just 0.3% on a monthly basis and were down 1.9% annually to £1.7m.

PCL sales volumes were flat over the month but down 11.2% annually to just 61 per week or 3,191.

LCP said there was a rally in greater London where prices were up 1.2% on a monthly basis and 2.6% annually to £620,753.

Sales rose 1.5% on a monthly basis to 84,707 in greater London, which was down 3.5% annually.

The new-build market was struggling during the month in the capital, with sales down 61.4% annually in PCL, while greater London registered a 28.1% annual decline.

New-build transactions were up 4.7% in England and Wales on an annual basis.