We are already in a housing market which is showing signs of slowing down. All markets hate uncertainty, uncertainty breeds inaction, inaction stalls activity and leads to a market slow down. What we really need right now are some solid decisions from Government, giving the country less to worry about and letting us get on with it.
Theresa May, called this election to summon a strong parliamentary mandate for Brexit negotiations. There are two benefits to the election for property. Firstly, during her Election campaign, Theresa May is likely to set out a clear trajectory for Brexit and this will bolster activity in the immediate future. Secondly, in the longer term, if Government have a larger majority, this will lead to greater political and economic stability. Russell Quirk, CEO of eMoov said; “the eradication of questions around the legitimacy of the EU vote, a second referendum and any opposition, will only serve to buoy the housing market further and should result in a larger degree of stability going forwards.”
In the lead up to the Election we are likely to see a drop in transaction volumes. Having said that, a survey released by eMoov shows that the majority of buyers and sellers are not thinking of changing their plans due to the upcoming Election. 57% of vendors are continue to sell, 18% said they would put their plans on hold. Similarly, 59% of buyers are pressing ahead, 18% said they would wait until after the Election.
Overall, we shouldn’t see a sudden plunge in prices or activity, but perhaps a slight decline in the house coming to the market and there for a continued rise in prices for those brave enough to continue as normal. Sarah Beeny stated; “Britain’s exit from the European Union is a key political event over the next few years and the sooner a favorable deal can be thrashed out, the better as uncertainty and instability are likely to have an effect on the property market”.