With the snap general election now behind us and the results in, we at Location Property Services have been looking at how the process itself and the results are predicted to affect the UK property sales and residential lettings.
HOUSE PRICES EXPECTED TO RISE
The uncertainty in the run up to the snap general election saw house sales on hold as people held off making big financial decisions before the election results were in. Homeowners wanting to get the best prices for their property remained cautious, not wanting the results to damage those prospects.
Buyers and sellers opted to ‘wait and see’. Those buyers needing to move carrying on and doing so, and those considering it, holding off until the results were in.
Although house prices have stayed flat this year, a dip in the number of available properties on the market, a high employment rate and historically low mortgage rates are likely to support house price levels over the rest of the year according to leading housing economists.
Some experts are predicting that following the uncertainty and once the aftermath of the results have settled, it will be business as usual for house prices and property sales in the UK. However, the last thing that the housing market needed right now, with house growth slowing, was a hung parliament, and that’s exactly what it’s got. More political uncertainty could affect buyer and seller confidence and we could see buyers holding off on purchasing.
It is however, generally regarded by most property gurus and experts, that the UK property market on the whole will not be affected for too long by the election or the results.
Property expert Sarah Beeny believes “the general election results won’t have any major long term impact on the UK housing market.” “We may see people holding off buying and selling for a few weeks while everything settles, but that will be about it”.
Mortgage lenders are also confident that any impact from the general election will settle quickly, saying that any transactions already being processed are unlikely to be affected and with many attractive mortgage deals around, first time buyers will still be on the hunt for homes.
Brian Murphy, head of lending at Mortgage Advice Bureau said, “If you look past the sentiment and shock, little has actually changed”.
“No new laws have been passed overnight and for those people already in the buying or selling process, nothing has changed overnight either”.
PROPERTY TO LET – LETTING AGENT FEES
The conservative government announced plans in their autumn statement last year for a ban on letting agent fees to tenants. The proposed measures looking to stop hidden charges and end tenants being hit by costly upfront payments.
With the conservative government still in power, and following the Queen’s speech last week, the bill outlines a ban on landlords and agents from requiring tenants to make payments as a condition of their tenancy, with the exception of rent, security deposit (now capped to one months rent), holding deposit and tenant default fees.
For tenants, this means that renting a property should be more affordable, with reduced fees to pay upfront. However, certain experts are predicting that landlords may well put higher restrictions on the tenancy agreement with regard to flexibility in keeping pets and decorating, reasoning that they are no longer allowed to take higher security deposits to cover potential damage from this.
All in all, the snap general election results have changed little within the government and their policies.
Although the number of houses on the market has shown a dip within the past year following the Brexit results, house prices increased for the first time in 5 months this May.
Buyers and homeowners who have been holding off and waiting for the election to pass, will now have a better idea of how the land lies and house sales are predicted to resume quickly.
The letting fees ban should show an increase in the number of tenants looking for property to rent with their choices now expanded due to a decrease in initial layout.