Buyers holding back

April 9, 2015
Kerb appeal

Now with just four weeks until the election on 7th May it appears the property market is stalling, can anyone blame buyers with some of the housing policies that Labour are proposing. This is probably a blip until the outcome becomes clear, Labour have voiced strongly their intentions about introducing a mansion tax, industry analysts are saying this is causing potential purchasers of the most expensive homes  to hold back until after the election result is known.

In a recent report  Jonathan Samuels from Dragonfly Property Finance says “For demand to have fallen particularly sharply at the upper end of the market underlines the sensitivity of this demographic to political uncertainty,”

The Bank of England states “The fall in demand was significant in prime lending”

Supply from the banks remains relatively high, people should be encouraged back to the mortgage market with the prospect of low borrowing costs and greater availability of credit from lenders, once the voting is over that is.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agent Talk

London basements boost value by up to 20%

The latest market analysis by prime London property brokerage, Jefferies London, reveals that London homebuyers who want to secure a property with a basement face a tough task. Not only do these much sought-after spaces increase a property’s value by up to 20%, but they’re also incredibly rare, found in only 2% of the capital’s…
Read More →
Breaking News

Bailey applies the brakes but ‘two more 2026 cuts priced in’

Vote to hold rates ‘closer than expected’ as Bank of England eyes April for 2% inflation target Focus turns to US and Japan in impact they play on shape of global investment flows says Rathbones’ Head of Market Analysis Kirsten Pettigrew, Senior Financial Planner, warns of making financial decisions based on speculation around rate trajectories…
Read More →
bank of england interest rate
Breaking News

Bank of England to hold interest rates at 3.75%

Following the Bank of England’s decision to hold interest rates at 3.75%, here are some thoughts from the Industry. Matt Smith, Rightmove’s mortgages expert says: “Today’s Bank Rate hold was widely expected given underlying inflation and wage growth data, and it’s currently likely we’ll see the next Bank Rate cut in June. Average mortgage rates…
Read More →
Breaking News

Building Safety Approval Process Urgently Needs Fixing

Bradley Lay, a Leading Construction M&A Expert Calls on Government to Urgently Fix Building Safety Approval Process as Insolvencies Surge A leading UK construction expert has called on the Government to urgently reassess the Building Safety Regulator (BSR) approval process, warning that delays in the current system are “slowly killing the economy”, triggering thousands of…
Read More →
Breaking News

Kickstarting Private Housebuilding is Key to Sector-Wide Recovery

Starts on-site decline by 9% during the three months to January 2026, remaining 16% below 2025 levels Residential construction starts fell by 24% on the preceding three months and 32% against 2025 figures Non-residential project-starts increased by 6% against the preceding three months, finishing 7% up on a year ago Civils work starting on-site remained…
Read More →
Social Housing 2019
Estate Agent Talk

Building the Wrong Homes Won’t Fix Homeownership

For many years, the national discussion about affordable housing has focused on one appealing idea that simply building more houses will make it easier for first-time buyers to own a home, and the issue will fix itself. However, Propertymark’s member agents, working daily in local housing markets across the UK, see a far more complex…
Read More →