New homes bounce back after election doldrums

ESTATE agents say they have seen an instant pick up in buyer activity in London since the general election as political stability and the lowest mortgage rates in almost two years revive demand.

- Jonathan Prynn

Knight Frank said it had seen particularly strong recovery in viewings and offers in the new homes market after two months of doldrums in the run up to the July 4 poll, which delivered a 170-seat majority for Labour.

After a spring surge, the total number of offers made on new-build homes in the capital plummeted by around 50% in June and July compared with a year earlier, Knight Frank said while viewings were down by just over 10%.

Across the broader London housing market new offers falling in the two months combined fell to their lowest 2012.

But Knight Frank said August viewings are up 11% on last year while weekly offers made have now returned to 2023 levels.