Prime London set for take-off

Savills UK head of residential research Lucian Cook said the markets will restart as the “spectre of mansion tax is now removed from the market”.

He added: “We expect much of the deferred demand from the pre-election period to flow back into the prime market over the remainder of 2015 and 2016.”

Jonathan Hopper, managing director of buying agents Garrington Property Finders, feared prices spiralling out of control. He said: "London price rises had slowed almost to a standstill as prime property buyers awaited the election outcome.

"What we don't want to see are house prices spiralling out of control now the spectre of uncertainty has been lifted.

"The market needs a period of normality which hopefully a healthy level of buyers and sellers will bring.

"The last thing the new government wants to be addressing early on in its new tenure is the issue of crippling house prices."

But luxury real estate firm Sotheby’s International Realty UK has already taken calls from international buyers who want to get back into the market, said its managing director of residential development Michelle van Vuuren.

She added: “At the top end – for the next five years at least – a cessation of the clamour for a mansion tax will see a number of transactions that have stalled to come back on line as certitude creeps back into the market.

“It is going to be an exciting time to be in the London market over the summer.”