The General Election and the Property Market
Prime Minister Theresa May announced a general election on 18th April, with the aim of increasing levels of certainty and to guide Britain through the changes of BREXIT. Approval from the House of Commons was subsequently granted, and now the campaigning has started. So will this election affect property market stability?
In order to determine whether this will alter the stability of the market, there is a need to first determine the property markets current condition. There are two key factors; the level of demand and the buyer’s ability to finance the purchase.
Currently the local property market appears to be in a stable place, with a good level of sales going through, demonstrating that demand and the ability to finance the purchases of property exists. However, property values are not growing at the rate they did before the 2007 financial crisis.
Historically there has always been a link between a general election and the number of property sales. Based on the previous general elections, we can expect a dip in property transactions during the period leading up to the election. In this case there is only a month until the ballot date on the 8th of June, significantly reducing the period of uncertainty. The former Residential Chairman of the Royal Institution of Chartered Surveyors, Jeremy Leaf has stated “”The period of indecision starts from now until the election and thankfully it is relatively short. Inevitably, a lot of decision-making will be put on hold, particularly as the polls fluctuate, and that includes the decision to buy and sell property.” However many believe the outcome is clear and on balance it is likely that there will be a Tory victory, which potentially reduces the level of uncertainty during this period, as it is the opinion of many that five more years of Conservative party leadership will be a positive move for the country.
Overall this general election is unlikely to have any detrimental influence on the property market, and after the result the market is likely to become more stable.Back to Blog