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What the election result means to house prices
The result of the general election has put an end to the recent spell of uncertainty that has stalled the housing market.
A Tory majority government will boost transaction levels as vendors who have been sitting tight - especially in the upper echelons of the market where the threat of Labor's mansion tax has suppressed sales - put their homes on the market in large numbers. London saw over £30m in transactions on the Friday immediately after the election as buyers who had stalled over the threat of mansion tax, closed deals before venders had the opportunity to put prices up.
Transactions typically end up 15pc above what you would expect in an average year for at least six months after an election. That potentially means a 30pc difference between activity numbers in the 6 months in the run up to the election versus the 6 months after. We have already seen a modest increase in viewings and hopefully this will continue.
Unlike London, viewer’s up here are still very price conscious and the added problem of  the Scottish Land and Buildings Tax is not helping our end of the market, but that is here to stay for at least the next 5 years, so hopefully buyers can’t put off the inevitable for that long!
Although viewings have taken off at the lower end of the market further up the scale is slower, but there is still a noticeable increase since the election, it feels like we have now joined the motorway, the election result is the indicator to get into the fast lane and traffic is starting to move.
More viewings always translate to more sales, with construction at its lowest for two years, this will inevitably push prices up later in the year. England, particularly the South is already seeing this. At long last the property market has some good news.
Bill Reid BEM BA NAEA DipPFS
Reid Estates