Although there has been a recent surge in the number of properties coming onto the market, buyers are finding it increasingly difficult to obtain a competitive mortgage.

This is the view of rightmove.co.uk following publication of their House Price Index this week. The property website has found that, on average, UK house prices have shown a moderate increase of just under 1% over the past 30 days. The average property in the UK now stands at just over £237,000

Despite the uncertainty surrounding the general election, May saw the highest volume of home sellers entering the market this year and now that the new government has been installed, this figure is set to continue to rise over the summer months.

However, of particular concern within May’s house price index was the steep rise in unsold properties, which may be further evidence of severe imbalance in the number of buyers to sellers.

A spokesperson from rightmove said that the relationship between the two is now under “increasing stress” and that sellers are slowing beginging to lower their asking prices in an attempt to court the few buyers who are actually in a position to proceed.

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Now that we have a new government in place experts in the housing sector are pleased to learn that we will see the end of Home Information Packs (HIPs). However, in keeping with their ‘green’ policy, sellers will still be required to obtain Energy Performance Certificates.

The Home Information Packs are not popular with estate agents who say they deter sellers. The National Association of Estate Agents believes that housing supply will increase once the information packs are abolished.

In fact the demise of HIPs will no doubt come as welcome news to everybody except the conveyancing firms, and other similar companies, that have spent millions on the venture.

April saw a slight increase in the number of people registering as house hunters according to a recent survey conducted by the Association. An average of 8 sales were agreed per branch, the same amount as in March, but each branch saw an average increase in the number of homes for sale; up from 60 to 62.

Gary Smith, the president of the NAEA, noted that the stamp duty exemption granted in the last budget doesn’t seem to have encouraged first-time buyers to enter the market. In fact the percentage dropped in April.

The exact nature of other new housing related policies are as yet unclear, but according to a recent survey, a lot of people are in favour of the Liberal Democrat policy of granting ‘Green Loans’ so that home owners can make their home more energy efficient and invest in micro-renewables such as wind and biomass technologies.

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The upcoming general election will dampen the housing market, and the demand for contractor mortgages, according to experts.

A spokesman from an independent estate agent said that many sellers are waiting for the housing market to improve before putting their home up for sale. But if you follow the economic law of supply and demand, people should be putting their house on the market now when demand is high and supply is low.

Three quarters of a million houses are currently on the market but February sales were less than 10% (74,000) of that figure. That’s half the peak level that was reached in mid 2007.

This low sales figure can in part be attributed to the lack of available credit. In February, contractor mortgage approvals fell to a 9 month low and only 47,094 home loans granted across the whole of the UK.

Experts believe that many potential buyers are waiting to see the outcome of the election before committing themselves to a house purchase. The worst result for the market would be a hung parliament as this would create instability in an already fragile sector.

The stamp duty exemption for first-time buyers could help boost sales and it is thought that the Bank of England may keep interest rates the same for the remainder of this year.

The UK needs more new housing as levels have fallen to their lowest point in over 60 years. But if we get a hung parliament, we will have a further period of uncertainty until another election is held.

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