BRIEF-Savills sees deferred demand flowing back into market post election

May 8, 2015 7:32 AM

May 8 (Reuters) - Savills Plc :

* Savills response to UK election result

* "We expect much of deferred demand from pre-election period to flow back into prime market over remainder of 2015 and 2016"

* On supply side, it will still take some time for high levels of available stock that have built during a long period of pre-election caution to be absorbed

* Political certainty is also likely to prevent a dip in housebuilding, as planning policies put in place prior to election gain further traction

* Expect biggest growth to be outside of capital, with strongest medium-term prospects in remainder of south of country given expected pattern of economic growth

* Savills 5-year mainstream forecasts are +19.3 percent as a UK average and +10.4 percent in london

* Improvements in London market are likely to be sufficient to trigger a renewed ripple effect into markets beyond capital

* Expect mainstream housing markets to pick up a little momentum over short term,

* It is in prime markets outside London where we expect to see greatest value increase

* "We expect that would-be sellers who had adopted a "wait and see" approach pre election will now bring more stock to market"

* "We expect mainstream housing markets to pick up a little momentum over short-term"

* High returns and comparative political stability that UK offers to international investors are likely to continue to make it destination of choice for global cross-border investors in real estate Source text (http://bit.ly/1F9hFfV) Further company coverage: (Bengaluru Newsroom; +44 207 542 1810)