UK property prices soar to record high after Tory win

Property prices across England and Wales soared after the Conservatives won the UK general election.

The average price of a house for sale in England and Wales rose to £294,351 in June, according to a Rightmove report. This figure is £8,218 higher than the previous record – set in April.

Dwindling supply over the past few weeks caused prices in the property market to increase.

The Tory majority win last month boosted the number of buyers, but the number of sellers didn’t rise as much as expected, and supply subsequently declined.

Rightmove Director Miles Shipside said since the election there has been an “unanticipated” drop in the supply of new properties.

Mr Shipside said:

“Many potential sellers have so far failed to come to market.This has pushed up some of the asking prices of those properties that have been marketed, meaning that buyers are faced with paying a new average record price high for the more limited choice available.”

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Prices in London up 5.7 percent

Concerns about new property taxes were alleviated after the Conservative win.

The average price for a property in London was up 5.7 percent to more than £600,000. Prices in Chelsea and Kensington gained 25 percent.

Property prices in London rose the most.

“The strong rebound in prices has been exaggerated by some owners of upper-price bracket property returning to the market,” Shipside said.

“Having downed their selling tools in the run up to the election, many have now picked them up again.”

New properties coming to market down

In June the number of new properties coming to market in England and Wales was 8.5 percent lower compared to the same period last year and 3.9 percent less than in May.

Shipside commented:

“That will be of no comfort or use to the mass market which needs more choice in the right locations at affordable prices,”

He concluded that the UK government has to “urgently deliver more new-build homes.”