Agents are reacting favourably to news that the Conservatives appear to have won yesterday’s General Election with a majority of just under 80 seats.
There is also speculation that a more powerful Housing Minister, with Secretary of State status and a seat in the Cabinet, will be appointed.
In the early hours of this morning, seat after Labour seat turned blue in constituencies which had been Labour for as long as anyone could remember.
Liam Bailey, of Knight Frank, said that supply is now likely to rise. He went on: “This will put downwards pressure on prices; however some vendors may expect a bounce in prices, which may create a stand-off between buyers and sellers as the market re-prices.
“A shortage of supply in the lettings market may be further exacerbated as owners attempt to capitalise on any perceived ‘bounce’ and list their property on the sales market, which would put upwards pressure on rental values.
“Uncertainty over future tax changes in the Budget, which is scheduled to take place in February, may prompt some to accelerate plans in coming weeks.”
Nick Leeming, chairman of Jackson Stops, welcomed the end of ongoing uncertainty but called for action on cutting Stamp Duty across all house price brackets.
Walter Mythen at JOHNS&CO said of the election result: “This is the best outcome for the property market although we anticipate growth will continue to be slow for the foreseeable future as people recover from the hangover of the last three years of political instability.
“A Tory majority gives us some much needed clarity and will result in a quicker bounce-back to a ‘normal’ market. We wouldn’t expect any dramatic increases or decreases in the market but buyers and sellers will finally be able to get moving.
“We may well see the return of the casual investor too – who had all but disappeared in the last three years of political instability.”
Haringtons Buying Agency described the likely victory as “hugely comforting for the wealthy”.
Nina Harrison said: “I would expect prices to increase – they won’t race up but prices will definitely strengthen in central London as more people start to buy and sell again.”