UK property market set to stay subdued as election result takes its toll

London

BRITAIN'S shock election result took its toll on the property market last month and the slowdown is likely to continue through the rest of the year, according to a survey published on Monday. The most sluggish July in five years saw house prices in England and Wales slip by 0.2 per cent from June to an average of £298,900 (S$528,000) as political and economic uncertainty unsettled buyers, the report by Acadata and LSL Property Services Plc found. It left the annual rate of increase at just 2.9 per cent, the weakest since July 2013.

The report adds to signs that the housing market is faltering as Brexit jitters and the squeeze on consumers from faster inflation cast doubts over the economic outlook. Acadata blamed the weakness last month on the June election, which saw Prime Minister Theresa May unexpectedly lose her Parliamentary majority, and the continuing effect of a tax hike introduced last year.