The UK housing market can expect an increase in sales and rental activity across Britain after Boris Johnson’s Conservative Party secured a resounding victory in the general election, property experts say.
“The property market will be one of the main beneficiaries of Friday’s decisive General Election result,” said David Westgate, Group Chief Executive at Andrews Property Group in a statement.
Such a conclusive victory for Boris Johnson has the potential to turbocharge the property market and get it out of its current rut.
The certainty that comes with a 5-year administration will create confidence and bring back the aspirational buyers and sellers that have been lacking since the EU referendum result.
However, this does not necessarily translate to an increase in house prices.
As demand increases so too will supply, as those holding off on selling put their properties on the market.
With increased competition house prices may not see the 2% rise that is predicted post-election.
What Does This Mean For Buyers?
It is expected that the new year will see a flurry of activity with sellers wanting a 'fresh' start, and with the political turmoil behind the country it has given a much-needed confidence boost.
With this in mind, buyers may be in stronger negotiating positions, and will certainly have more choice.
What Does This Mean For Landlords?
The housing market was a huge policy debate on the lead up to the election, and the private rental sector was no exception.
Landlords across the country are collectively breathing a sigh of relief that they will be spared the labour rent controls and open-ended rental agreements.
However, the Tories are still planning to abolish the 'no fault eviction' notice section 21.
This section allows landlords to evict their tenants without reason, as long as they give them 2 months’ notice.
They plan to replace this with section 8.
It acts in a similar way except the landlord can only serve it under specific conditions i.e the tenant has breached the tenancy.
The government do intend to make this more robust by adding additional conditions, so as not to leave the landlord without the power to evict tenants.
With landlords calling for the abolishment of the additional stamp rate, and the government leaning this way in the past, could we see a resurgence in the investment property market again in the near future?
How Does Christmas Impact The Property Market?
If you look at RightMove's analysis on the trend over the Christmas and New year period, you will see the potential buyers almost double over this period.
With a new year, the 'big move or new investment' becomes the top on everyone’s to do list.
This is statistically the best time of year to sell your house!
With all the positive press surrounding the election results and the stability of a majority win, it could be an exciting year for the property market in 2020!
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IMPORTANT: This article provides an overview of investing in property the UK, it does not constitute advice and should not be used to make financial decisions. You must always seek advice from independent financial specialists when making major financial decisions.