Just as the housing market was expected to enter a period of relative stability during the summer, the recent announcement that the country will vote for a new government on 8th June 2017 has UK homeowners and sellers once again deliberating the affect this will have on the housing market.
The snap general election, announced by Theresa May, came as a shock for many, and with a great deal of ‘BREXIT uncertainty’ already looming over the property market, coupled with the recent stamp duty hikes and landlord tax relief reductions, people are understandably nervous about what this means for the UK’s house prices.
Many experts believe that there is no reason to worry, as this sort of election is less likely to affect house prices than a standard general election. As former RICS residential chairman, Jeremy Leaf, commented:
“The good news is that unlike many Government announcements which are leaked, they managed to keep it secret and there hasn't been any build-up because when the cat is out of the bag it adds to the existing uncertainty in the market.”
The property market has shown great resilience in the face of previous political changes. Research shows that ahead of the 2015 general election, the UK’s average property price continued to rise each month at around the same level as in 2014 and 2016.
However not all people agree with this optimism. My Chain CEO, Sohail Rashid, shared his thoughts…
“In the UK property market, consumers crave predictability and certainty. Any potential change to the political landscape, such as the announcement of the snap general election, can have a significant impact on consumer mind set and cause people to think twice about completing a property transaction.
“If we take a look back to 2016, there were three key political events which caused periods of unpredictability, and subsequently had a detrimental effect on property chains - the stamp duty increase, the EU referendum, and the US general election.
“I anticipate that the upcoming general election on the 8th of June will have a similar effect, and will cause consumers currently in the property chain process to act much more cautiously.”
It would seem that the property market continues in limbo. However, one thing that can be determined amongst all the speculation and noise – for now, it’s business as usual.
Ogilvy and Sneyd provide a residential property management and lettings service for property investors, buy-to-let investors and property landlords in Staffordshire. Discover more about what we do, and how we could help to increase the return on your investments at www.ogilvyandsneyd.co.uk