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Property asking prices in UK surge 2.6% but expert warns hung parliament could put recovery

Property website Rightmove said the average price of a UK property rose to £235,512 between March 7 and April 10 in a marked improvement of the 0.1% lift seen the month before.
The number of new properties coming on to the market also rose sharply, with buyers enjoying the greatest choice since October last year following months of a shortage in supply.
And the Government’s new stamp duty fillip for first time buyers introduced last month for all properties under £250,000, has provided a boost, as Rightmove reported a 35% increase in the number of property pages viewed over Easter.
The news comes after last week’s survey data from the Royal Institution of Chartered Surveyors showed that selling activity soared to its highest level since May 2007 in March.
But Rightmove warned that the potential for over-supply could see prices come under pressure later in the year.
‘With weather disruptions out of the way, more sellers are coming to market and they appear to be ignoring the uncertainties facing potential buyers. Prices are up, but so is choice, and the two are not happy bedfellows in the longer term,’ said Miles Shipside, commercial director of Rightmove.
‘This year more than ever the traditional spring seller window is a price sensitive one. If asking prices continue to rise, all but the most popular locations are building themselves up for some of the gains to be lost later in the year,’ he added.
The house price statistics show the average value of a property is now 6% higher than a year ago. East Anglia led gains among nine of 10 regions tracked by Rightmove showing an increase of 4.9% In London, prices rose in every district from a year earlier for the first time in two years.
But there is also the unknown factor of the outcome of next month’s general election which most experts believe will affect the real estate market and increased nervousness about a hung parliament. ‘As far as the housing market is concerned, any election result is better than no result. In the event of a hung parliament, the market is likely to go into suspended animation until greater certainty emerges,’ said Shipside