More reports on: World economy

Cameron victory a huge boost to UK property market

news
09 May 2015

The UK housing market is expected to heat up again after the victory of the Conservative Party (See: David Cameron's Conservatives clinch majority in UK polls). The top end of the market is likely to fire up the most, fuelled by overseas investment.

According to the projection by estate agent Savills a 19.3-per cent growth in mainstream house prices over the next five years and 10 per cent price growth in London could be expected.

As the counting progressed said in a statement, "With an effective Conservative majority, or Conservative-led coalition now looking like the most likely result, we expect much of the deferred demand from the pre-election period to flow back into the prime market over the remainder of 2015 and 2016, particularly given that the spectre of a mansion tax is now removed from the market."

Country house prices could be up as much as 10 per cent "within weeks" according to Edward Heaton of Heaton and Partners, a property search agency. According to Heaton there would be "bun fights" in the next few weeks for the best houses which came to the market as confidence returned in the top-end of the regional market, The Independent reported.

He added, the double whammy of relief over Labour's proposed Mansion Tax and a friendlier environment for foreign investment would increase demand in the coming weeks.

According to Sotheby's it was going to be an exciting time to be in the London market over the summer. The company was already taking calls from international buyers who wanted to get back into the market.

Michelle van Vuuren, managing director of residential development at Sotheby's International Relaty UK told The Independent, it was going to be an exciting time to be in the London market over the summer.

Becky Fatemi, managing director of central London agents Rokstone said calls started when the votes were still being counted, The Guardian reported. She said the first five serious inquiries on properties started to come in just after midnight, and as of 10 am this morning she had had over 50 inquiries on London property, via calls and emails.

She added, of the 50 or so inquiries the company had had, around 50 per cent were from UK buyers, the balance from overseas purchasers, of which most were from the Middle East and Asia.

Fatemi said she had received an offer from a Saudi family on a 2.5-million apartment in St John's Wood which had been on the market for the last eight months.

Henry Pryor, a buying agent for wealthy clients, said he had been contacted last morning by prospective buyers and had two emails already from clients confirm instructions to kick on. One was looking for a flat in Chelsea for around 5 million, the other a house in central London between 10 million and 15 million.





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