The impact of the general election on UK house prices: What to expect
With a general election announced for 4th July 2024, we explore what this could mean for the UK housing market and how, historically, a general election has impacted house prices.
The UK housing market could be looking for a strong summer, with research from property portal Rightmove showing that 95% of buyers claim that the upcoming general election will not affect their plans to move.
In previous years, a looming general election has seen to put a halt on buyers looking to move until they have some more certainty in the market. However, with the shorter than average lead time before the election, this may not be the case this time round. Buyers look set to prioritise personal circumstances, such as moving ahead of a new school year, or before the arrival of a new baby, over waiting for the results of an election.
According to The Telegraph, there has been a two-year pent up demand for moving, with the cost of living crisis, soaring inflation and interest rate hikes forcing homeowners to stay put. However, just hours before announcing the general election, inflation was announced by Sunak as being “back to normal” at 2.3pc, interest rates were held by the Bank of England in September, for the first time since before the pandemic, and, in a bid to be competitive, lenders dropped their mortgage rates; stimulating a reported uplift in the property market.
With a focus from both parties on reforming the private rental sector and boosting housing supply, there is less of a huge divide between the parties’ housing policies, as seen in the last election. Whilst Labour's agenda is pushing to deliver 1.5 million homes over the next five years, this is unlikely to have a short term effect on the property market. One policy that could seek to cause a ripple on the prime-London market is the tax treatment of non-doms, which could see a short-term hindrance on pricing.
If the forecast is correct, we could be in for a busy autumn in the UK property market due to this positive momentum in the economy, with the UK general election set to make little impact on the overall property market. So, don’t delay your move and miss a busy summer period, get in contact with By Design today to see how we can help you.
