This week’s announcement of a snap General Election on 8th June came as a surprise for many across the country, but now the decision has been made, it has been seen as a positive move by numerous groups, estate agents among them.
OPPToday canvassed opinion among a number of property professionals.
What the General Election could do to the country’s house prices
Ed Heaton, founder and Managing Partner of search agency, Heaton & Partners:
I see the decision to hold a General Election in June as a positive for the property market, particularly as the snap nature of the announcement, means that there has been no long build up with buyers and sellers wanting to hold off. Whilst the outcome is widely expected to be a Tory landslide, the element of uncertainty is limited because of this. The prospect of five more years of Conservative rules will be seen by many as a real positive.
Penny Mosgrove, CEO at Quintessentially Estates:
Historically General Elections along with market activity and the level of transactions show a clear correlation. Having said this, we don’t have the same long run up to the election as we would normally experience and by having a ‘snap election’ it will mean that any hesitancy from property buyers or vendors will have much less of an impact overall. It could be a positive decision for the property market in that it will bring some much-needed political certainty ahead of the Brexit negotiations later this year.
Both the London and wider UK housing market outperformed expectations following last year’s Referendum and I believe this will be the case again following the June General Election. No other capital city is home to five separate airports, such fantastic job opportunities, incredible transport infrastructure, such a stable government, inspiring culture – the capital city is a buzzing metropolis with much to celebrate.
As a result of the General Election I believe that vendors will become even more realistic on the pricing of their properties. Motivated buyers and sellers will push on and savvy buyers will make the most of this opportunity.
Jean Liggett, Chief Executive Officer of agency, Properties of The World:
I think today’s announcement is very positive news for the UK property market. PM Theresa May needs a popular mandate and the General Election will give her that. I expect the Tory majority will increase in the House of Commons at the expense of Labour seats.
The General Election will stamp May’s authority and decrease uncertainty going into negotiations regarding the UK’s exit from the EU.
Markets in the UK dislike uncertainty and crave certainty. This certainty will positively impact on the UK property market, resulting in increased sales, increased prices or at least no decreases. UK and worldwide property investors will continue to make the UK a primary market for them to invest in.
Property investors and landlords may use the next few months to call on the main parties to:
- scrap the stamp duty on the first £125,000 for buy to let investors
- bring back tax relief on mortgage payments
- provide funds for local councils to build housing
Jonathan Stephens, Managing Director, of investment specialist, Surrenden Invest:
Unlike usual general elections, where contending parties draw up their manifestos and there is a degree of uncertainty as to the outcome, come the wee hours of 9 June I am fairly confident that the UK will remain under the control of Prime Minster May and the Conservative Party.
The Tories set out a clear plan back in 2015 which has pretty much been consistently executed over the last two years and we see no reason why it should not continue.
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When it comes to the UK property market, it’ll be business as usual. There remains a chronic undersupply of housing and for whoever ends up in power as a result of this general election, building more homes and supporting the UK property sector will no doubt be at the top of their agenda.
In addition, online estate agent eMoov.co.uk, has provided the first snapshot of public sentiment, canvassing the opinion of 1,000 home buyers and sellers. It asked them, “Given today’s announcement of a snap general election if you are buying/selling a house will you still go ahead & buy/sell regardless?”
Both buyers and sellers say they will continue with their property transaction regardless of the general election or its outcome.
