The housing market has weathered all kinds of storms over the last 18 months. Hikes to stamp duty, landlord tax relief reductions and Brexit have all threatened the market, but each one has been overcome.
The whole country was stunned last month, when Prime Minister Theresa May announced the country would go to the polls on Thursday 8th June. So how might the General Election affect the UK’s housing market.
Why now?
The Prime Minister’s decision to call a general election was a necessity, as she requires a strong parliamentary mandate for the upcoming Brexit Negotiations. Now that the Supreme Court has decided she needs parliamentary approval of the Brexit deal, the opposition parties now have the right to oppose the deal, as do the House of Lords.
The election contributes to the uncertainty generated by Brexit, however, if the conservative party are successful in increasing their majority, then it is predicted that we will see a greater economic and policy stability going forward.
Jeremy Leaf, former residential chairman of the Royal Institution of Chartered Surveyors (RICS) said: “...if the result is decisive either way, that will give the Government a greater mandate for its existing policies and is likely to result in a surge in activity in the housing market at least for the honeymoon period afterwards.”
However, Mr Leaf added "If you gamble and leave it until after the election, it could be a very different market; at least we know what the current market is like. You may make more money if you sell afterwards if there is a positive outcome, but you may need to pay more, particularly if you are trading up."
What affect has it had?
According to a recent survey conducted by eMoov, 57% of sellers said the election won’t stop their property plans. Only 18% of those asked said they would wait until after the election.
Likewise, buyers are still equally committed with 59% still going ahead with their purchase, and 18% saying they’re on hold.
Whilst there may be some short term uncertainty, property commentators believe that the election is unlikely to have any sort of significant negative impact - and could even mean a boost for the property market in the long term.
