how will the general election affect house prices

The General Election and House Prices

With the general election due to take place on July 4th, the big question being asked by many in the property sector is how will the general election affect house prices and the housing market, if at all.

Granted – the last few years have seen astronomical highs and lows in the market, leaving many still looking for a rebalancing of the market before they take steps to buy property in Stockport or looking at how to sell a house.

If you are contemplating a move in either direction, you are in your right to want to be sure of what the outlook will be.

Do You Need To?

If you need to move quickly to relocate for work purposes, you may have no choice but to move regardless of the outcome. However, if your move is something that can wait it out, you may feel more comfortable putting such plans on hold until later in the year. A question at the moment is – do you need to?

The UK property prices did bounce back modestly after a few months with a more mixed picture, with a slight increase in some mortgage deals. While resilience was documented, HMRC data noted that house sales rose for the fourth month in a row back in April.

During and After

Typically, during election periods, housing market trends see little impact – mainly because the events of an election are not front and centre of the minds of those looking to get a sale on a home at the time. Wider economic trends have a more substantial impact than anything related to a national vote.

A year following a general election is when house prices have been seen to increase, typically to the tune of 4.6%. On an interesting note – the one area that will have a significant impact on the housing market is if a poll results in a hung parliament or a party with the overall majority. In the latter case, house prices lift by an average of almost 7% more compared to a hung parliament scenario – down to the lack of stability.

Post-Election Bounce

However, that is no indication that house prices will fall like they did following the 2010 vote. They may increase more slowly than if we had a majority. We could even see the post-election bounce that will strengthen the market later in the year. Again, that prediction could be around new political uncertainty boosting customer confidence.

As the current polls look this week, the nation isn’t looking at a hung parliament this time around. But an election alone doesn’t trigger a rebound in the housing market – more the economic and political circumstances around it.

2024 is seeing plenty of that pent-up demand after many stayed in place due to the high inflation, rising living costs, and 14 interest rate hikes in succession. It is worthy of note that the Bank of England has never slashed interest rates before a general election in its 27-year independence – and we have seen six national ballots since 1997. Even the stamp duty holiday of the pandemic had not tempted some to move during the rising costs, especially those first-time buyers weighted down by soaring rents while trying to save for a deposit.

Call on Professionals

How will the general election affect house prices? Understandably, those wishing to buy property in Stockport will feel that a general election may potentially signal disruption to their plans, but the reality is not set in stone.  Economic climate and affordability may be a more important factor than an election, but the early word is that the election may have less of an impact than previous votes.

The best way to stay on top of how the market performs is to talk with estate agents Stockport and get an educated layout of how the markets are standing. Contact the friendly team at Joules estate agents today for buying property advice you can trust.

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buy or sell first

Sell First or Buy First?

When planning on moving homes, many wonder whether they should buy or sell first. The moving process can be extremely stressful. Feeling that one single delay in the process can knock everything out of sync and allow chaos to ensue. Many people want it to be as simple as selling one house and moving into another, but it is rarely that simple.

The majority of people are dependant on selling their property to buy another one. To ensure a smooth transaction, it is advisable to have your current property listed and under offer before considering making an offer on a new home. Certain sellers may prioritise proceedable buyers, meaning having your house on the market and under offer beforehand can increase your chances of securing viewings and offers on potential properties.

Putting Your House on the Market

If the purchase or deposit on your new home heavily relies on the money from selling your current property, it pays to start with how to sell a house.

It does not do any harm to look at house prices and check if it is possible to buy what you want with the expected budget. However, any offers you make will almost certainly be rejected until you are ‘proceed able’. That means being in a position to proceed with the purchase.

If your house sale funds are required to proceed, you won’t be in a good position to make that offer over someone else in line who has them.

Ideal Buyers

Cash or first-time buyers are ideal as this is a shortened chain, but having any proceedable buyer for your home will put you in a position to make an offer on another property. Having your existing property under offer to a proceedable buyer will give you the strength as a buyer to make your dream move a reality.

Of course, you should consider that different sellers and agents may have varying viewpoints. Many won’t entertain allowing viewings by buyers who cannot proceed immediately.

Market Stability

Another element to consider with your choice is the state of the market at the time. In a buoyant market – where demand is greater over supply – there is a greater chance of a buyer being secured in a shorter amount of time. When the market supply is greater, more sellers will be inclined to wait it out to get the best possible results.

As well as the market, individual circumstances are one of the biggest influencers. Some sellers will need a quick move and to sell up as soon as possible. Other sellers may have the luxury of not having to move so fast.

The best advice will always come from professional estate agents Stockport when it comes to selling and buying property advice. Contact the team at Joules to help determine the best way, time, and avenue to sell and buy property in Stockport.

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