Property market still looking to rebound from election
Political uncertainty usually brings a period of stalling property prices and slowing sales figures, as people wait to see how things pan out before they commit to spending money and investing in the future.
However, while this period is normally brought to an end when an election passes, bringing about more political security, the general election in 2017 has not had this effect, with the market remaining uncertain even into July.
In June, Theresa May's plan of calling an election to secure her party another five years in power almost backfired spectacularly, when Labour made huge gains under Jeremy Corbyn, and the Conservatives failed to secure an overall majority.
The hung parliament has done little to settle the nerves of many who would have otherwise invested in the property market, and as such, a degree of uncertainty remains in the sector at the current time.
According to buying agents Garrington Property Finders, this effect has been most prominent in the prime market, where the usual post-election rebound has yet to materialise.
According to Garrington, since the election took place last month, the average price in the prime property market across the UK has fallen by some seven per cent. This is not only a decline, but a marked difference to what we've seen in the last few elections.
After the results were announced in the previous five general elections, prices in the prime property market rose by 26 per cent, but this has not happened this time, showing that the sector is struggling to regain its feet after the uncertainty in the months before the vote.
"The prime market tends to be the most sensitive to political and economic uncertainty, and the current dose of both is clearly having a cooling effect, especially in London. Britain hasn’t had a minority government since 1974, so the fragility of the new government’s mandate and ongoing concerns over Brexit are pushing the market into uncharted waters," said Jonathan Hopper, managing director Garrington Property Finders.
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24-July-17General Lettings News