Election jitters hit UK property market, Pound to look beyond pre-election data

Right move house price report released over the weekend shows that UK property market has been hit by election uncertainty in April/May this year with house prices in London fell by most in nine months. A Labour party win would have imposed higher taxes on properties especially on high end ones, hence the drop in prices.

• Average prices in UK dropped by -0.1% from April, drop was more acute in London with prices dropping 2.3% from April, however they are still up by 1.5% from a year ago.

The average asking price for a home in London is now 581,074 pounds ($915,800), according to Right move. Nationally, the average is 285,891 pounds.

In London's most expensive districts, prices plunged 6.3 percent this month to 1.44 million pounds, according to the report. That's a 7.4 percent drop from a year ago. Labour party's win would have charged high end house owners additional levy.

Impact -

• Market is expected to shrug off any weak pre-election data as chances are high that they are due to uncertain election outcome as predicted by polls.
  
  
• However any post-election time data will be closely scrutinized to gauge the impact of decisive outright majority for the conservative party.

Pound is trading at 1.566, down -0.25% today. Bulls failed to break above 1.582 area in twice attempt.