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23 May 2024
ELECTION SPECIAL… is the property market really impacted by a General Election?
Well, here we go, it's election time!!! Politics will be grabbing every headline for the next 6 weeks, following Rishi Sunak’s announcement that a General Election will be held on 4th July. For many people, the prospect of 6 weeks of party political broadcasts, campaigning leaflets through our front doors and endless speculation about what might or might not happen is not something to look forward to. But, for those people looking to either buy or sell a property during election season, what can we expect to see happening in the local property market…?
It is largely considered that a general election equates to a quiet property market, but invariably very little actually changes during or immediately after an election is over. There will always be sellers looking to sell, there will always be buyers looking to buy and a new government (or a continuation of the same government) won’t change that.
Although it’s arguable that some buyers may want to see if there is any change to the legislation or tax implications surrounding buying property, the primary influences on peoples decision to buy hinges on affordability. This means economic stability and, more directly, the cost of mortgages… something that is not controlled by politicians.
The property market will be more interested in listening out for news from the Bank of England and mortgage lenders than it will for news from politicians seeking our votes. It has been well publicised that interest rates have remained stubbornly high, but with news this week of inflation falling to 2.3%, just 0.3% above the Bank of England target, there is cause for optimism.
This encouraging news has led to strong speculation that interest rates will be on their way down very soon, with the possibility of up to three rate reductions before the end of the year. These are the headlines that the property market will react to and anyone thinking of selling is advised to put themselves in a position to come to the market sooner rather than later. Be first in the queue when buyers take advantage of those better mortgage rates that are on the horizon.
If you are considering selling or buying at this time, don’t let the election distract you. The world keeps turning and the market will carry on regardless of who sits in No.10!
Written by Stuart Hutchings
Branch Manager
Chapplins, Havant
Well, here we go, it's election time!!! Politics will be grabbing every headline for the next 6 weeks, following Rishi Sunak’s announcement that a General Election will be held on 4th July. For many people, the prospect of 6 weeks of party political broadcasts, campaigning leaflets through our front doors and endless speculation about what might or might not happen is not something to look forward to. But, for those people looking to either buy or sell a property during election season, what can we expect to see happening in the local property market…?
It is largely considered that a general election equates to a quiet property market, but invariably very little actually changes during or immediately after an election is over. There will always be sellers looking to sell, there will always be buyers looking to buy and a new government (or a continuation of the same government) won’t change that.
Although it’s arguable that some buyers may want to see if there is any change to the legislation or tax implications surrounding buying property, the primary influences on peoples decision to buy hinges on affordability. This means economic stability and, more directly, the cost of mortgages… something that is not controlled by politicians.
The property market will be more interested in listening out for news from the Bank of England and mortgage lenders than it will for news from politicians seeking our votes. It has been well publicised that interest rates have remained stubbornly high, but with news this week of inflation falling to 2.3%, just 0.3% above the Bank of England target, there is cause for optimism.
This encouraging news has led to strong speculation that interest rates will be on their way down very soon, with the possibility of up to three rate reductions before the end of the year. These are the headlines that the property market will react to and anyone thinking of selling is advised to put themselves in a position to come to the market sooner rather than later. Be first in the queue when buyers take advantage of those better mortgage rates that are on the horizon.
If you are considering selling or buying at this time, don’t let the election distract you. The world keeps turning and the market will carry on regardless of who sits in No.10!
Written by Stuart Hutchings
Branch Manager
Chapplins, Havant
About the Author...
Stuart has worked in the property sector since 2004, developing his knowledge of residential sales, new homes, lettings and property management. Having sold everything from studio flats to million-...
Read about Stuart