According to Hometrack’s latest national housing survey, the supply of homes for sale (3.7%) continues to outstrip demand (1%) as the election is cited as a common factor behind increased buyer uncertainty.

Buyers are taking longer to commit as the number of viewings per sale has increased for the third consecutive month in a row. Fewer bargain properties are on the market which when set against a backdrop of sluggish economic growth and rising unemployment levels has led to increased caution among buyers willing to commit.

The proportion of the asking price being achieved remains unchanged at 94% which is the first time this measure hasn’t risen for 13 months. According to Hometrack, evidence suggests that agents are finding it increasingly difficult to maintain price rises while still achieving sales volumes – the average time to sell has reached a plateau at 8.3 weeks. Property prices are up by +0.2% in April, compared to March, which is -1% less seen in the last two months although a well-above average growth in London house prices of +0.6% has flattered the average monthly price increase. Over the last 12 months, property prices are up by +1.8%.

Richard Donnell, Hometrack’s director of research, said: “ The bounce in market confidence over 2009 was all about pent-up demand feeding back into an undersupplied market. However, the fundamental issues which have plagued the economy for some time still remain. Rising unemployment, lack of mortgage funding, public spending cuts and the prospect of tax rises post-election, continue to act as a back-drop to a fragile and increasingly polarised housing market.

“The near term prospects for the housing market are intrinsically linked to demand which in turn is reliant on strong consumer confidence. The outlook for the economy and jobs market as well as household finances all impact on housing demand and buyer behaviour. With an election well under way, it is not surprising that buyers are currently hesitant in their decision making, the question is whether market sentiment will improve once the result of the election is known.”