Voters elect hung housing market
A Midlands estate agency has predicted that the housing market will mirror the election outcome of a hung parliament, with no great swing in prices in either direction until the implications of the new political landscape become fully clear.
Heywoods Property of Newcastle-under-Lyme believes that the much of the market uncertainty that existed in the run-up to the election would continue for some time to come, with many homeowners choosing to stay put until a new coalition government announces its position on issues such as stamp duty and HIPs.
The company said that public sector workers would be particularly reluctant to make a move, given their concern about pay and job security in light of proposed public spending cuts by the Conservatives and Liberal Democrats.
But Heywoods said that the market recovery in recent months demonstrated how this uncertainty did not necessarily suggest a decline in house prices.
It said that, with fewer homeowners willing to sell, demand would increase for those limited properties available - which was exactly the driver behind the house price increases over the last year.
However, it concluded, neither buyers nor sellers should be too concerned about a hung parliament as the impact on prices was likely to be negligible.