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What Does The General Election Mean for the UK Property Market?

Political uncertainty tends to slow down the housing market at any time, and as the traditionally busy summer period approaches, activity is almost certain to halt.

Those most affected will be the buyers and sellers about to dip their toes in the market, so chances are that until the uncertainty subsides, they will stay put.

HouseSimple.com CEO Alex Gosling explained that with the slowdown in property growth, the last thing that the market needed was a hung parliament, but this is what has happened. Increased political uncertainty could impact buyer and seller confidence, with buyers refraining from purchasing until the political landscape is less murky.

Mortgage lenders are confident that things will settle down in the UK property market. They state that property transactions currently in process are not likely to be affected by the surprising election results. First-time homebuyers will be enticed by attractive mortgage deals and both buyers and sellers dealing with divorce, death, and displacement will still need to act.

No lasting impact on the property market

Sarah Beeny, TV property expert and owner of Tepilo.com, did not believe that there would be any significant and lasting impact on the property market. She anticipated that people might hold off on any property transactions in the next couple of weeks, but not beyond that.

Russell Quirk, EMoov CEO and founder, said that yet another Housing Minister will need to be seated, as Gavin Barwell lost his seat on Croydon Central. He added that this will be the country’s sixth Housing Minister in as many years.

 

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Current Prime Minister Theresa May, as leader of the biggest party in Parliament, has the right to make the first attempt at forming a government. She has apparently come to an informal agreement with the Democratic Unionist Party to support a minority government if necessary.

If she wants to remain in power, the Prime Minister will have to secure a successful vote on her general policy programme within a couple of weeks after the June 19 Queen’s Speech. She stands an excellent chance of winning that vote if she does come to a mutually beneficial agreement with the DUP, but if she does not, she could lose the vote and her government would fail. Jeremy Corbin would then have a chance to reach his own accord with the smaller parties in the left wing. This move is unlikely to be successful because the total number of seats won by Labour and these other parties is less than those that the Tories have won on their own. If neither primary party leader can form a new government, new elections will be held this fall.

Mortgage Advice Bureau head Brian Murphy said that if one looks past the shock and sentiment, little has actually changed. No new laws have come into being overnight, and for those people presently in the middle of buying and selling, nothing has changed. Mr Murphy anticipated that as far as the country’s property market was concerned, the coming weeks would be business as usual.

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