^{Friday 28th May 2010}

Demand for top end properties in the UK increased in May pushing up prices as buyers ignored the political uncertainty in the UK during that period.

According to the Primelocation.com Prime Index the average value of a prime property, or top 25% of properties, rose by 0.6% to £452,563 in May and experienced annual growth of 1.9%. The most expensive 10% of properties, or prime platinum, put in an even stronger performance, increasing by 1.1% over the month despite an 8.2% increase in stock.

The index shows that while the hung parliament and negotiations surrounding the formation of the coalition government caused some temporary fluctuations in the international financial markets and the strength of the pound, it did not deter wealthy UK and international buyers from purchasing property.

Andrew Smith, research director at Primelocation.com, says: “Wealthy UK and overseas buyers do not have to overcome the barrier of obtaining the necessary finance. In addition, they are less likely to feel the effects of any potential changes to taxation or public spending cuts put in place by the new government than the average homebuyer.”