Pre-election market 'squeezed' says agent

The housing market across the UK is in a pre-election ‘squeeze’ with several indicators used by agents suggesting a significant slump in transactions. 

Research by Hamptons International - using data from Countrywide, the agency group selling one in 10 of all UK homes - says across Britain there are 18.1 per cent fewer homes on sale today than a year ago. Only London has more, thanks to a collapse in sales of expensive homes ahead of a possible mansion tax. Other regions have seen the stock of homes on sale plummet by up to 25 per cent.

Hamptons also says that homes are taking longer to sell. Nationally, it now takes 7.3 weeks for a sale to be agreed - that’s an average two days longer than a year ago. Again there are major regional differences, because in London and north east England it takes a full 10 days longer for a sale to happen than in spring 2014. 

A third measure is the number of buyers registered with estate agents compared to the number of homes on sale. The bad news for sellers, says Hamptons, is that even with far fewer homes on the market, the number of buyers per property is lower than a year ago - 11.0 now against 11.3 in spring 2014. 

“It’s a pre-election squeeze” says Johnny Morris, Hamptons’ head of research. “It’s normal for the market to slow down ahead of an election. There’s little effect on prices but potential purchasers put off decisions. Sales fall between 20 and 40 per cent” he says. 

However Morris, who has analysed 35 years of general elections, says the three months after polling day typically see a sales surge 13 per cent above normal.