Estate agents optimistic despite coalition

Estate agents in the West Midlands are confident the sales market will continue to grow, despite fears that a coalition government could trigger a fresh property slump.

Experts had warned that the uncertainty of a hung parliament could have a negative impact on the economy.

But property sellers in the region say they are hopeful that the new government will provide a stable platform for a solid market.

House prices in the region last month showed signs of recovery, with a 4.5 per cent rise, but the hung parliament prompted predictions of a price crash. However, estate agentss hope that the relatively swift formation of the Tory-Lib Dem coalition can provide some stability for the markets.

Joanne Richards, from the board of management at Connells estate agents in Wednesbury, said it was a "guessing game" as to how the coalition would perform.

She said sales had been relatively quiet in the past couple of weeks, with people waiting for the outcome of the election, but added that they still had plenty of properties to market.

"We're hoping that it is going to move the market on now if people have a bit more confidence in the economy and the Government," she said.

"It is too early to tell. Hopefully, people will have a bit more confidence as the majority of people voted Conservative so they will have some sort of confidence. Sales are a little bit quieter than we would hope for at the moment but a lot of that is due to the uncertainty of the election, and things aren't going to change in a week."

Maddy Swann, an associate in Berriman Eaton, based at Tettenhall, said the jury was still out on the new government but the company hoped for a continuation of the rise in their sales over the past 12 months.

"The stock market needed to stabilise, so the situation is better than it was a week ago," she said.

"David Cameron was going to drop the Home Improvement Packs, which would help speed up the market. Our sales have risen between 15 and 20 per cent in the past year, although prices have not gone up.

"We hope interest rates remain low but it would also be helpful if there was more assistance for first-time buyers from the new coalition.

"The market is stuck in the £300,000 to £500,000 category, and more stimulus from below would help shake things up."

Mike Dell, president of the Black Country Chamber of Commerce, said the lack of a conclusive election result had been of great concern. "We need strong leadership and a willingness to compromise from our politicians to form the best government we can and start the difficult job of reducing public spending and the deficit," he added.