Following the election of the first Conservative majority government in 18 years, the property market could begin to see some improvement over the coming months. Any period of uncertainly, including the possibility of a change in government, can have a negative impact on the property market. The fact that there will be no large changes in many of the policies that have been in place for the past few years is being seen as a positive sign for the market over the coming months.
Buyers More Confident Following the Election
It is likely that some potential buyers have been putting off making decisions on property based on possible changes to legislation that may have been introduced under a new government. Indeed, there was a slight dip in activity in the period before the election as everyone waited to find out the result.
The very fact that the election is over – irrespective of the result – has meant that many people who have been considering buying a property are now more confident to invest. The fact that there has been no change in government is also likely to give people more confidence to buy.
Positive Reaction from the Private Rental Sector
Landlords in the private rental sector are likely to see the continuation of the Conservative government as positive. Labour had proposed rent controls along with a reduction in tenant fees as well as a reduction in tax relief for landlords. If these changes had come into effect, many landlords may have invested elsewhere as a result.
This could have had a negative effect on tenants because it may have led to demand outstripping supply, which would have inevitably led to rental increases. It is therefore expected that the buy-to-let market is going to strengthen as landlords who had been delaying making a decision now decide to invest.
For other buyers, the fact that there will no longer be a mansion tax for properties over £2 million could also influence more buyers to invest in prime real estate.
Low Interest Rates Will Help
In addition to all of these positive factors, there is the added benefit that interest rates remain incredibly low, and are likely to do so until at least 2016, according to recent reports. As a result, there are some excellent mortgage products currently available, making this potentially a very good time to buy. Policies such as the government’s Help-To-Buy scheme could also help to boost the market.
Much Will Depend on the Economic Recovery
For the housing market to be strong, it requires an economy that is improving. The British electorate have voted for a continuation of the government to avoid large policy changes at a sensitive time, and there are good signs that the economy is on the mend.
A strengthening economy is likely to encourage the construction of more properties, and it is also likely that property values will improve steadily over the rest of the year, providing people with a better platform to plan and implement their property plans.
Further Information and Assistance
If you are currently considering buying or renting a residential property an independent home search consultancy could help you to source and secure the ideal property and guide you through the transaction process.
Call Richard Mottley on 0800 999 5758 or 07769 32 57 58 for further information or submit an enquiry here: http://sanderlinghomesearch.com/contact.