Housing market on hold ahead of general election

The housing market is on hold as home buyers and sellers adopt a “wait and see” approach in the run up to the general election, estate agents have warned.

They said people are holding off agreeing deals on property in anticipation of the general election, amid concerns about budget cuts and potential tax rises.

A total of 17 per cent more estate agents reported a rise than a fall in house prices last month, down from 31 per cent in January, according to the Royal Institution of Chartered Surveyors.

Jeremy Leaf, a spokesman for RICS, said: “Most market indicators are still positive and consistent with further house price increases. However, the magnitude of the gains going forward is likely to continue to ease.”

Alex McNeil, a RICS member based in Halifax, said: “The market remains extremely challenging with low volumes of sales currently being agreed. The forecast budget cuts and potential for tax rises are causing many prospective purchasers to wait and see. The sooner an election the better.”

And John Haigh, a RICS based in North Yorkshire, said: “The looming general election has led to a lull in the market with vendors hesitant to put properties on the market.”

Article from: www.telegraph.co.uk 09/03/10

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