PROPERTY AND THE POLITICAL LANDSCAPE
I write this piece just 3 weeks before the general election. As you read this, momentous decisions will have taken place that impact upon the health of the property market.
In the lead up to this election the number of new properties coming to the market has dropped significantly to the degree that the Times called it ‘a housing crisis’. This, of course, impacts on the age old laws of supply and demand and so in this same report the paper voices its concerns about house prices speeding ahead of inflation. Yet, the people I speak to all say the same thing that they don’t like uncertainty and would wait for the outcome of May 7th before making a decision to sell.
At the same time sales are still being consistently agreed so the available stock continues to deplete and a vicious circle continues. What agents do know is that at the beginning of this year with zero inflation, record low interest rates and a healthy economy the property market was zipping along. Naturally, we all want the same thing so whatever the results from the big day we all hope for business as usual.
After all a robust property market equals a progressive economy and all political parties know this so the expectation is that whoever is in power would not want to effect the status quo and make any damaging changes in this vital sector. It will be very interesting to see what I’ll be reporting in the next edition.
