With the election just weeks away and the polls in overdrive, it is no surprise that house hunters are feeling somewhat uncertain. With mortgage rates remaining high across the country and rents still on the up, the housing market is a central battleground in the party’s manifestos. Indeed, a YouGov poll conducted earlier this month, said that 10% of voters stated that housing policy would primarily inform their vote.
The election comes at a time when homeowners and prospective buyers could face higher mortgage rates for longer as the election looks set to delay interest rate cuts. This is also set against the backdrop of a housing supply crisis – an issue banks say needs to be prioritised when Parliament returns in mid-July.
So where does the housing market feature in the promised manifestos of the top three parties?
The Conservatives have promised to:
- Not increase the current stamp duty thresholds
- Abolish stamp duty on properties up to the value of £425,000
- Resurrect the Help to Buy housing support initiative
- Deliver 1.6 million new homes by speeding up planning on brownfield land
Meanwhile, The Labour Party has pledged to:
- Reintroduce home building targets
- Implement a Freedom to Buy scheme
- Commit to building 1.5 million new homes over the next parliament
- Bring back local housing targets and that 40% of homes built must be affordable
And The Liberal Democrats have pledged to:
- Build 10 new garden cities like Letchworth and Welwyn
- Permit local councils to buy land based on current value rather than on a hope-value basis, by reforming the Land Compensation Act
- Trial Community Land Auctions to ensure that local communities benefit from new developments in their area
- Introduce ‘use-it-or-lose-it’ planning permission for developers who refuse to build
What impact will the General Election have on the Housing Market?
Chiltern Relocation is not expecting any knee jerk reactions in the housing market as a result of the General Election. This sentiment is shared by Chief Economist at Nationwide, Robert Gardner, who has said: “It appears that housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most homebuyers, elections are not foremost in their minds while buying or selling property.”
Indeed, this finding was echoed by Rightmove in its spring survey, which found that 95% of prospective buyers said a general election would not change their plans. Rightmove’s property expert, Tim Bannister, said: “Over the past four years, home-movers have faced numerous challenges, including a global pandemic, a shortage of housing supply, and rapidly changing prices. For many, 2024 is finally the year to make their move, and they’re determined to proceed with their plans to secure their next home.”
To buy or not to buy?
Chiltern Relocation has certainly seen an uptick in interest in the housing market recently as clients take the view that their move is one of longevity, and that any political party policy changes will not have a direct impact on their sale or purchase in the immediate future.
These feelings are echoed by the estate agency Winkworths who said delaying a sale or purchase could mean people miss out on “the best time of year in the property calendar”. Its analysis of HMRC figures found that over the last five years (excluding Covid-affected 2020), this period made up for the highest proportion of annual sales of any region. It also found that properties took 10 fewer days to sell than in winter (51 days compared to 61).
Chiltern Relocation hopes that the current political focus on the housing market will ensure that the right policies will come into force and that we can look forward to increased confidence at all levels of the housing and rental markets.
If you would like more information about the housing market and advice as to whether now is a good time to consider your move then please do get in touch. Call 01494 672086, email enquiries@chilternrelocation.com or visit our site for more information www.chilternrelocation.com
If you would like more information about the housing market and advice as to whether now is a good time to consider your move then please do get in touch. Call 01494 672086, email enquiries@chilternrelocation.com or visit our site for more information www.chilternrelocation.com
