Andy Sommerville, director of Search Acumen, comments on the RICS residential market survey for April:
“Few people will have been surprised to see a fall in new instructions during April ahead of the election, which was billed as the least certain and most closely contested in years. The decisive Tory win was a vote for continuity and will help to restore optimism to the housing market, as well as increasing the chances that transactions will pick up in May and beyond.
“An all-blue cabinet could accelerate decision making, so we can count on the continuation of flagship policies like Help to Buy, the arrival of the new ISA and the return of Right to Buy. The government is rightly championing home ownership, but it would be a mistake to hope that more demand-side measures will be enough to address an acute housing shortage.
“RICS’ data shows eight consecutive monthly drops in new instructions, which cannot be blamed on election uncertainty. The latest rise in prices reported by surveyors remains a concern and the supply crisis is still high up the list of pressing issues that the new government must address.”