UK property market recovery reliant on incoming government

The steps taken by the next government to tackle public sector debt and implement spending cuts will have the largest effect on the property market, it has been claimed.

This is the view of Yolande Barnes, head of Savills' residential research department, who believes that a hung parliament will have a negative effect on sales and the sector's recovery.

Ms Barnes explained that until clarity was achieved on economic policies and tax increases, the market is likely to stall.

"This will take time to determine and the housing market hiatus will continue until there is more certainty," she confirmed.

Furthermore, according to research conducted by Knight Frank, political uncertainty is expected to present new risks for property.

However, the property company is standing by its prediction that a slight annual loss of three per cent will be seen overall in the sector.

According to the Halifax house price index, UK property values fell by an average of 0.1 per cent in April, following a one per cent increase in March.

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