As I am sure you are more than aware the ‘shock’ result at last weeks general election where the conservative government lost its majority has resulted in a hung parliament. As I write they are trying to put together a coalition with Northern Irelands DUP. So here are some ways that this could effect the property market:
A New Housing Minister
Ealier in the week Alok Sharma, the MP for Reading West, was named the new Housing Minister, replacing Gavin Barwell who lost his seat to Labour in the election.
The hung parliament will create more uncertainty in an already subdued market. No market enjoys uncertainty and the housing market is no different.
There are a record low numbers of properties coming to the market, in fact some parts of SE18 have dropped to a 1.8% turnover from around 6% just 2 years ago.
Young Peoples Voices
I’ve seen it suggested that a lot of the swing in votes came from young people coming out to vote. Clearly there are many issues that affect peoples voting choice but a wise government should recognise this trend and look to address the difficulty for first time buyers getting on the housing ladder.
While a period of uncertainty benefits no one, the low levels of people moving resulting in an increased demand for each property coupled with the ongoing failure to build enough homes to keep up with demand means, in my opinion, that while a correction in prices is possible, particularly in areas of London and the South East which have seen prices outpace wages, it is unlikely that we will see a huge fall in prices – particularly as employment remains high.
If you are thinking of selling or investing in the area and would like to discuss the market drop me an email