Election to blame for house price fall in early May

Rightmove said prices will rise this summer

Asking prices measured by its monthly index dropped in early May, falling 0.1 per cent to £285,891 as buyers sat on their hands (GETTY IMAGES)

A summer surge in the property market is on the way following the Conservatives’ general election win, property website Rightmove said today.

Asking prices measured by its monthly index dropped in early May, falling 0.1 per cent to £285,891 as buyers sat on their hands. This was the first fall at this time of year since the last bout of pre-election jitters hit the market in May 2010.

Agents like Foxtons and Countrywide suffered from low activity before the election. Rightmove director Miles Shipside said: “Buyers should note that there is often a surge of property supply after an election, as those who have held off coming to market decide to take the plunge. The previous election saw jumps in new seller numbers in all regions of the country, with London and Wales leading the way with over 20 per cent more properties coming to market.”

Asking prices measured by its monthly index dropped in early May, falling 0.1 per cent to £285,891 as buyers sat on their hands.

London – where more homes were under threat from Labour’s planned mansion tax on properties worth more than £2m – saw even starker falls in asking prices as the election drew nearer.

The average price of a property coming to market in London this month dropped 2.3 per cent or £13,511 to £581,074, bringing the annual rate of increase to a four-year low. The biggest faller was the capital’s most expensive borough, Kensington & Chelsea, where prices tumbled by £593,732 – more than 23 per cent – to just below the proposed £2m mansion tax threshold.