That is the view of David Plaister, MD of LetAssured UK, the property management company set up by landlords for landlords. “Figures released by mortgage lenders indicate that house prices fell by 0.1% in April,” said Plaister.
“I think that is because this year’s price increases have encouraged more people to sell their properties and the market has become flooded.
“The recession is in remission and the economy is growing, albeit slowly. The housing market will continue to grow independently of the hung parliament. Whatever, the result of the party political horse-trading I predict there will be another election within the year.”
Whilst Friday’s figures from the Halifax show prices were down 0.1% in April, falling to an average house price of £168,202. There had been a 1% rise in March.
However, average house prices have risen by 8.7% (£13,539) over the last twelve months which would seem to support David Plaister’s opinion.
The Halifax’s results contrast with the figures published by Nationwide last week which reported a 1% rise in April and a return to double-digit growth year-on-year.
“Minority governments are historically cautious by nature and spending cuts will probably be less severe than we had expected. This will leave more money in the economy to aid growth,” said Plaister.