The General Election 2017 means one thing for those buying and selling properties – uncertainty. But what will the vote mean for house prices?
The Chief Executive of estate agent Countrywide, Alison Platt, looks at how general elections have affected the property market in the past: “Past trends show a clear correlation between general elections and the level of transactions in the property market.
“Analysis of sales transactions over the course of the last nine general elections indicates there will be a dip in activity pre-election.”
However, she continues: “What’s different here is that we don’t have the same long run-up to the election – it’s around seven weeks between the calling of the election and the ballot date, compared to the usual six months. The short timescale between now and the election also means that any consumer hesitancy pre-election will have less of an impact on transactions overall.”
Nevertheless, things are likely to pick up following the vote.
Platt explains: “Post-election, there will be a bounce back in the number of sales in the market. The highest levels are typically in the three months immediately following the election of a new government, where you’re looking at around 13% higher than the average expected levels.”
The Founder of property search agency Heaton & Partners, Ed Heaton, agrees: “I see the decision to hold a General Election in June as a positive for the property market, particularly as the snap nature of the announcement means that there has been no long build up with buyers and sellers wanting to hold off.”
Despite this, he does believe that uncertainty will be a problem: “While the outcome is widely expected to be a Tory landslide, the element of uncertainty is limited because of this. The prospect of five more years of Conservative rule will be seen by many as a real positive.”
The General Election 2017 will be held on Thursday 8th June.