House prices dip as election looms

In the run-up to the general election house prices in London have dipped.

While uncertainty reigns over who will win, and what their plans for taxes are, residents of the capital are sitting on their hands and not buying, according to haart estate agents.

The latest data from the property firm has shown that over March home values dipped three per cent, while vendors cut asking prices an average of 4.5 per cent to achieve a sale.

But while it is currently a buyers market, the uncertainty is unlikely to extend far beyond polling day on May 5.

"Impending general elections fuel uncertainty. Homebuyers are anxious about purchasing properties as they are wary of electoral outcomes and the looming tax rises that will further dent their budget," said Russell Jervis, managing director of haart estate agents.

"However this is in fact a great time for buyers to purchase a property as historic data tells us that property prices will bounce back post election," he added.

The average house price in London fell to £221,256 in March from £228,150 in February, haart revealed. But this was predicted to be a "temporary glitch" with the market forecast to bounce back post election.

"We are still seeing the re-adjustment of prices from last year. Sales that are being agreed today are on properties where the vendors are sensible about prices. It is very common for market confidence to dip pre-election but it is often a very temporary dip that swiftly picks up once the dust settles post election. We therefore predict a much more buoyant market in the next quarter," Mr Jervis explained.