In a new briefing document Yolande Barnes, Head of Residential Research at real estate adviser Savills, examines the possible implications of a coalition government, and examines the fine print of the Conservative and Liberal Democrat manifestos.

"The main, direct impact on the housing market will be the emergency budget and the resulting degree of austerity and all its implications for the economy," says Barnes.

"Some of the Lib-Dem 'soak the rich' policies may be curbed by Conservative influence, but it seems clear that 'help the rich' policies will not be tolerated. The main impact on the prime markets of these cuts will be on sentiment, especially for top earners and high net worth non-doms.

"Already, the announcements on capital gains tax have led to the possibility of second homes flooding the market and the exodus of small landlords from the investment market. It may also be seen as a positive encouragement for the 'corporatisation' of residential investment holdings, seeking to take advantage of the promised 'generous allowances' for businesses."

More broadly, Barnes highlights a surprising number of areas where there is distinct agreement on policy, or potential similarities and synergies in thinking; chiefly an apparent support for localism. In a search for common ground both parties of the new government may well alight on issues related to planning and housing delivery.

She believes that a lack of both private and public sector finance for new schemes will force a rethink on approaches to bigger and more difficult sites, "particularly in an environment where averting NIMBYism and winning local hearts and minds at an early stage will become of paramount importance to the progress of schemes".

"What is clear is that public spending initiatives will struggle to see daylight when austerity is the watchword," says Barnes. ""And in the private sector, inevitable austerity measures will increase the need for new models of delivery and funding."