House prices are still expected to increase by around 3.5% per year over the next five years, despite signs that the market has become more subdued recently, according to surveyors.
In an "ominous signal" for aspiring first-time buyers, surveyors anticipate house price inflation will continue to out-pace wage growth, the Royal Institution of Chartered Surveyors said.
The General Election does appear to have prompted more home buyers and sellers to adopt a "wait and see" approach, as the number of new buyer enquiries, the volume of fresh property coming to market and the number of sales agreed all fell in May.
Property stock levels remain at all-time lows with an average of 43 unsold homes on estate agents' books.
Over the next 12 months, surveyors expect house sales to pick up, with a net balance of 26% expecting sales activity to increase rather than decrease.