Your Move says General Election exacerbated market downturn

Your Move says the surprise General Election and the creation of a weaker minority government has exacerbated the slowdown in the housing market.

The agency’s latest house price index shows the average property price for England and Wales now being £2,358 lower than in March this year. 

More than half the unitary authority areas in England in Wales – 60 out of 108 – reported prices falling over the past month and the average house price in June was £301,114, down 0.2 per cent on May.

“The slide in house prices has coincided with the period since the calling of the General Election in April, but it is not the sole cause. For a start, the surprise announcement in April was mid-month, too late to have any real impact on sales. And at the time, the result looked in little doubt. Instead, the election and its result have merely exacerbated a slow-down in price growth that can be seen since the beginning of the year” says Your Move’s latest market assessment.

It claims that it is still premature to say this will be a sustained correction on prices, and suggests that interest rates and overall transaction levels remain encouraging.

In contrast with several indices, Your Move also claims that central London prime property “is back” and suggests that prices in the City of Westminster have risen a hefty 19.7 per cent in the past year. 

However, this is not reflected in most of the capital. “Average prices in the capital fell for the second month in succession in May, down £3,101 or 0.5 per cent, to £613,650. In total, 25 out of London’s 33 boroughs saw prices fall” Your Move says.