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May 2, 2017
#GE2017: What it means for the property market?
Tags: letting agency news , housing news , property news , business management
Questions?

With a snap election looming on June 8th 2017, we’ve carefully assessed what it means for the property industry. What will the result be for house prices? Is it likely to slow the market? Will sellers choose to put their property on the market before or after the election? All of these questions are debatable and many property professionals have shared their opinion. We’d like draw upon these views and assess what the overall impact a general election in June will likely mean for the industry.

Housing Market 

 “Whoever wins will start with a clean slate, which will be a good thing for the housing market.” (Sarah Beeny, Tepilo)

“I think this will lead to the market stalling until the election outcome.” (Mike Trainer, Gowling WLG)

"Post-election there will be a bounce back in the number of sales in the market.” (Alison Platt, Countrywide)

Experts have warned that buyers and sellers are likely to be put on pause in the run up to the election due to increasing uncertainty. After the election however, the market is expected to bounce back as buyers and sellers continue their activity. When it comes to house prices, many property professionals believe the uncertainty in the market is likely to have very little impact. As it’s a short period between the announcement of the election and voting day, house prices should remain stable across the UK. Back in 2015’s election, prices rose steadily in the 5 month’s leading up to the vote, the short time period in this year’s election will mean little movement for house prices. According to Halifax’s Housing Economist, Martin Ellis, by the end of 2017, prices are predicted to slow by 1-4% due to the lack of property on the market. 

Housing Minister 

“It’s no coincidence that Jeremy Corbyn launched his election campaign in Gavin Barwell’s constituency – Labour genuinely think they can win there.” (Ajay Jagota, Keep It Simple)

“Clear policy proposals across property, land, construction and infrastructure must be set out.” (Lewis Johnston, RICS)

The threat of a new Housing Minister will not prove beneficial for the industry. The current minister (Gavin Barwell) has already published the Housing White Paper, whilst the letting agent fee ban continues to be consulted in Parliament. Should Barwell fail to return to Parliament, the industry needs a clear and precise leader, who agents and tenants alike will trust to deliver a promising housing market. 

Business Growth 

“Past trends show a clear correlation between general elections and the level of trade in the property market, with activity generally dipping pre-election.” (ARLA/NAEA)

“When it comes to the UK property market, it’ll be business as usual.”(Jonathan Stephens, Surrenden Invest)

In terms of business growth, the election is likely to have little impact on transactions in the market, leading to continued growth in the sector. eMoov recently surveyed 1,000 home buyers and sellers who both said they’ll continue their activity in the property market. Utilising prop-tech such as a communications software or automation software will also enable agents to increase business profitability during the election period. Furthermore, when it comes to the economy, capital remains strong as the pound continues to rise to new levels for 2017.

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