Savills sees UK residential market improving after pre-election drop

* H1 underlying pretax up 28 percent to 38.4 million pounds

* CEO says last two months see sharp rise in residential demand

LONDON, Aug 6 (Reuters) - Demand is returning to the British housing market, particularly in London, after a drop in the run-up to May's national elections, estate agency Savills said on Thursday as it posted a significant boost in profits.

Savills (Other OTC: SVLPF - news) , which reported a 28 percent rise in group first-half underlying profit before tax to 38.4 million pounds ($60 million), said earnings had been boosted by the strong performance of the British commercial market and a series of acquisitions in the United States.

However, Chief Executive Jeremy Helsby told Reuters the last two months had also seen a significant rise in demand for residential property, especially in London, following a drop in interest before May's polls in which Prime Minister David Cameron was returned to office.

"We've now got the June and July stats in and in terms of the indicators that we look at, which is things like applicants, viewings, number of properties on our books, they are all up substantially over 40 percent," he said.

"Clearly those indicators still have to be translated into fee income ... but certainly (there has been) more activity than we had in the first half."

Britain's opposition Labour Party, which was running neck and neck in opinion polls with the Conservatives, had pledged a series of measures which could have cooled demand in the capital, including higher taxation on the most expensive homes. ($1 = 0.6398 pounds) (Reporting by Costas Pitas; Editing by David Holmes)