Hung parliament 'could slow down housing market'
By myfinances.co.uk staff
The result of last week's general election could help to depress property sales and house price growth, according to one expert.
Yolande Barnes, head of Savills residential research, said that the market had slowed down in the run-up to the election as owners and house hunters decided to wait for the outcome of the vote before they pressed ahead with buying or selling.
However, as the result failed to deliver the clarity they wanted, so a "market hiatus" looks increasingly likely until Britons have a better picture of where tax rises and spending cuts will be implemented.
"Overall then, we think that the main impact on housing will be further and continued low transaction numbers and the increased possibility of further price falls particularly in the mainstream markets," she said.
Liam Bailey, head of residential research at Knight Frank, added that job losses in the public sector and stagnation in earnings will provide downward pressure on the property sector going forward.
However, this will be offset to some extent by low interest rates and mortgage rates, which are likely to move down in line with declining bond yields.
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