Sellers Re-emerge As House Prices Falter in Pre-Election Nerves

The number of house sellers has increased to levels not seen since May 2007 according to the latest figures from RICS, the Royal Institution of Chartered Surveyors.

RICS has reported a marked increase in the number of houses placed onto the market in March with vendor activity at levels not seen since May 2007, the month before the introduction of HIPS.

The surveyors also report that the rate of house price increases has slowed as new instructions outnumber sales.

21% of surveyors saw a rise in new instructions which compares with a balance of 16 percent in February, however new buyer enquiries stabilised in March, the net balance falling from seven percent to zero.

RICS is attributing the rush to market to pre-election jitters with house sellers eager to secure a sale before the General Election. The fear of a return to power of Labour or a hung parliament seems to be a driving force behind much of the renewed activity amongst house sellers.

The fifteen percent increase in properties coming on to the market in March is already strengthening the arms of purchasers who no longer see a restriction of choice as forcing them to pay more than they might wish, and offers are again being registered on average at 10% less than asking price.

Commenting on the effect of the election on house prices, Trevor Kent, former president of the National Association of Estate Agents said “Sellers are still, by and large, remaining firm on asking prices and only time will tell where this one, and the election, will go by mid-May.”

“A party underestimating the importance of the property market to the economy as a whole and that its remaining strong is of paramount concern to every citizen and voter does so at their peril”.

That the property market may see stagnation, or even falling house prices in the near future, is emphasised by RICS spokesperson, Ian Perry who said:

“With the general election approaching and uncertainty growing over the political direction of the country, many vendors who were previously inclined to sit on the sidelines now appear eager to put their properties on the market.”

“For the time being, many of the key housing market indicators are still positive or stable. However, with stocks increasing and sales decreasing we may see some modest price falls in some regions although London, the South East and Scotland are continuing to perform well.”