London barometer: House offers on the rise after General Election uncertainty

Despite the crippling effect of election uncertainty, offers received in April were up 15 per cent on last year indicating a strong appetite among vendors and applicants to do business. After a fiercely contested and unpredictable campaign period, figures show that the market lost patience waiting for a political outcome.

 

As forecast in previous editions of the Barometer, the election didn’t have as great an impact on transactions as anticipated and largely affected uncommitted buyers looking for excuses not to buy. That said, three times more flats went under offer than houses, demonstrating that it has been business as usual at the sub-million price point. Given the absence now of Mansion Tax concerns we feel this will further fuel the appetite for houses.

 

Collectively, we have about 120 properties that are being released now the outcome of the General Election has been confirmed. Feeding pent-up demand, such volumes indicate a bounce in transactions and a busy summer ahead.

 

The number of new tenancies agreed was similar to the same month last year, too, with new tenant registrations more than 25 per cent up on the same period.

 

The new Conservative government brings a wave of relief to landlords, sparking renewed confidence to invest in additional rental properties, while existing tenants will have the confidence to consider home ownership. The resulting increase in supply will cater to the seasonal migration of students and professionals into London, creating an overall uplift.

 

DOUGLAS & GORDON: AVERAGE LONDON SALES PRICE INDEX
	Q2 2014	Q3 2014	Q4 2014	Q1 2015
1 bed flat	£542,500	£544,500	£537,191	£542,025
2 bed flat	£843,750	£847,083	£835,120	£840,381
3 bed house	£1,745,417	£1,787,500	£1,758,722	£1,777,063
4 bed house	£2,631,167	£2,618,750	£2,557,237	£2,557,492