Market 'could suffer from hung parliament'
2010-04-14
A hung parliament could lead to further uncertainty in the housing and construction sector, an expert has argued.Ed Mead, director at independent estate agent Douglas & Gordon, said that a hung parliament "is bound to create instability in people's minds or sow the seeds of uncertainty".
However, he stated that there needs to be change in the long-term approach to the property sector.
"The reason you have ongoing constant price increases in properly is that there is a finite supply and no-one is building," he said.
An upswing in construction activity may bring benefits to the housing market, as an increase in supply may lessen demand pressures and make the market more accessible.
Mr Mead suggested that there have been problems on the supply side, possibly as people have been waiting until after the election to sell their homes.
His comments followed research from Savills, which suggested that a hung parliament would the least favourable outcome for the housing market.
