The property market beyond the election

 

As voters, we made our decision on polling day (June 8). The 'housing crisis' was hot on the agenda during the build up to the election. However, the snap election which was intended for the public to decide our strategy for leaving the European Union has not had as much of an effect on the property market as one have initially thought. The call for a snap election backfired and Theresa May is now in a weaker position. The Evening Standard published an article with just several days before we voted which drew upon research from Nationwide . The research indicates that broader economic factors have slowed down the property market during the build up to the election.

 

Robert Gardener, chief economist for Nationwide describes the slowing house price growth as a consequence of years of prices rapidly increasing. Gardener states that 'Housing market trends have not traditionally been impacted around the time of elections'. Those who are buying and selling are more likely to be concerned with inflation outpacing the growth of their salary.

 

The Evening Standard reports that the annual growth rate has lost some speed and is at 2.1%. But with the shortage of houses available, Nationwide has predicted that prices will increase by 2% this year.

 

The table below featured in an article from Which shows the number of transactions that took place in the UK each year (according to Land Registry data). 2010 and 2015 are election years and therefore are highlighted in red.

As a result of a hung parliament, Theresa May has formed a coalition with the DUP (Democratic Unionist Party). We are now looking for a new housing minister, after Gavin Barwell, author of the housing white paper, has lost his seat. The next housing minister has a great challenge ahead. They will have to decide between strengthening current policy or creating further disruption during this time of uncertainty.

 

Adam Challis, head of residential research at JLL (an Investment management company) has said, 'Importantly for housing supply, the policy direction as set out in the white paper on building more homes across the range of tenures will be upheld. 'Supporting new methods of delivery such as Build to Rent and off-site construction are also emerging and exciting sectors that will expand the pace of housing delivery.

 

'JLL believes the housing crisis deserves greater ambition and bold action from the new government. This requires cross-party support to de-politicise solutions and to provide longer-term backing for new solutions.'

 

Adam Joseph, CEO of The Happy Tenant Company has said, 'One thing all the parties agree on is the need for more housing, so let's hope this remains a priority.'

 

The Conservatives have set themselves the target of building a million new homes by the end of 2020. This should be the focus for the government. In the words of Theresa May, 'Now lets get to work'...

Published on 01 July 2017

Source Wonderlease

Written by Marc Cohen

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