Lack of supply of good quality country houses, which has been a major feature of the country market for over 12-months, will ease in the weeks prior to the General Election - now widely predicted for May 6, according to Prime Purchase.
Jonathan Bramwell, Head of Country at Prime Purchase said: "The shortage of prime country houses in all locations has been an important factor in holding prices stable and in some areas has caused price increases. However, there is now a perception that the General Election may result in a 'hung Parliament' which will struggle to cut public spending and to make the economic reforms required to allow the UK economy to recover."
Consequently, Prime Purchase is expecting a significant number of vendors, who have delayed putting their properties up for sale, to enter the market before the election.
"We sense that estate agents have a growing stock of properties coming forward which will hit the market over the next six to eight weeks. This is being driven by vendors’ concerns that the country market, post–election, will not deliver any higher prices than can be achieved now," Bramwell said.
Another concern is that a hung parliament and minority government would result in a downgrading of the UK status by international ratings agencies. This would result in a further weakening of the pound and push up the cost of imports, increase inflation and start a chain of interest rate rises.
William Marsden-Smedley of Prime Purchase said: "Given the projected economic scenario resulting from a hung parliament, most vendors are thinking of entering the market sooner rather than later. However, we do not believe buyers will disappear post-election because there is a good degree of pent-up demand. Our clients are buying for the long term, are generally not reliant on mortgage finance and are not likely to be affected by interest rate rises."
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