The region's house prices rose 1.2% in the past six months, according to Jones Lang LaSalle's latest UK Residential Market forecast.
Ian Thomlinson, head of Jones Lang LaSalle's residential development and investment team in Manchester, said: "The general election did not appear to put the brakes on the spring sales season. Statistics show a surge across the country in new vendors entering the market in the run up to the early-May poll.
"The resultant impact of the election is, however, likely to have a longer term impact on the property market. The plans to overhaul capital gains tax from 18% to at least 40% on non-business assets, such as second-homes and buy-to-let property and the eradication of the Home Information Packs, which is likely to increase housing supply in the short term both present downside pressures on pricing."
Thomlinson continued: "We anticipate that the full year will see a mixture of price rises and price falls and the housing market will be heavily influenced by the impact of new governmental policy. Overall we forecast annual house price gains in the South flattening, with Midland and Northern areas seeing slightly greater falls. Towns and cities exposed to the highest rate of public sector employment are likely to be more vulnerable to price decreases."