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.