Bellway revealed today that the risk of an increase in taxes is preventing people from buying new houses.

According to the house builder, the people have a doubt over the Government’s plan to handle the increased expenditure. This has resulted in a small decrease in the rate of interest.

In a statement, Bellway revealed that there has been a minor decrease in site visitor levels and weekly sales rates after the general election.

However, the Company disclosed that the overall sales in the year to the end of July were 200 more than the last year. The sales, up till the end of July will be 4,380. Also, there have been 1,800 reservations for the next fiscal year.

The recovery of house prices had increased last year and are now witnessing an increase. Halifax revealed that the cost of house prices plummeted by 0.4% in May and by 0.1% in April. However, they are about 7% higher than the previous year.

The internet searches regarding property have increased after the elections. Some investors are less likely to buy property in the wake of debt crisis in Europe.

Bellway also stated that the newly formed coalition Government will give more planning power to the local levels. Consequently, there will be alterations in the planning system and businesses will have to face fresh challenges.