London estate agents are reporting a buying frenzy of luxury apartments following the election of a party with no plans to introduce a new mansion tax. Hayley Platt reports.
House hunting in London. Ross Vowells and Katie Gale have only met a couple of times. But they're thinking about buying their first property together. They've signed up to PropertyBuyerMatch.co.uk. The online service brings together like-minded people wanting to buy their first home. SOUNDBITE: Ross Vowells, saying (English): "I'd be really keen to get onto he property ladder which is obviously a huge challenge for anyone my age. It's a really really big consideration but it's something that I'm really keen to do." SOUNDBITE: Katie Gale, saying (English): "For a deposit size you're looking at a deposit size of 15-20% before you even sort of flinch." House prices across Britain have risen 14 percent since the last general election. It was a key campaign issue. Wages during that time have remained flat. UK properties now cost five times more than what the average first time buyer earns. And it could take 29 years just to save up the deposit. Iain Hawthorn and Emma Leicester are the brains behind the Property Matching service. SOUNDBITE: Emma Leicester, co-founder, PropertyBuyerMatch.co.uk, saying (English): "We suggest a co-buying pre-nup, to have those hard conversations upfront. How long is this for? what are your plans? what are my plans? do you intend to travel? would you want to rent out your place. Things like that." The London property market has slowed in recent months. But last week's election victory for the Conservative party means they'll be no feared mansion tax. There are already reports estate agents are seeing a buying frenzy for luxury properties. Alastair McCaig is a market analyst at IG. SOUNDBITE: Alastair McCaig, Market Analyst, IG, saying (English): "I guess a longer term low interest rate outlook prevalent we should see the housing market start to regain a little bit of confidence. But I think the deflation that the housing market has felt for the last four or so months has maybe put paid to, certainly in the short term any worries about a housing bubble." The average price of a house in London is now almost £200,000. That's already way out of reach for most first time buyers. Ross and Katie may have a solution - but there are those who fear London could be inflating a new property bubble.