Lenders reported that demand for secured lending for house purchase decreased significantly in the first quarter of 2015, as it had in the second half of 2014, according to the latest Bank of England Q1 Credit Conditions report.

However, the lenders told the central bank that they expected demand to increase over the next three months.

“For demand to have fallen particularly sharply at the upper end of the market underlines the sensitivity of this demographic to political uncertainty,” said Jonathan Samuels, chief executive of Dragonfly Property Finance.

“Many prime and super-prime buyers are sitting on their hands and want to see what the next government looks like before they commit to a purchase. This is especially the case in the capital. That this is the most uncertain election in decades has certainly triggered more caution at this level of the market than normal. What the next government will look like is anyone’s guess.

“Overall, we expect demand to pick up during the summer months. With mortgage rates still very low and people feeling better off due to zero inflation, confidence is improving. We would also expect to see more money enter the property market as a result of changes in the pension rules.

“The fall in demand for home loans in the first three months of the year is consistent with the ongoing slowdown in activity levels. Over the past six to nine months, the property market has without doubt paused for breath.”