The general election is here and Thursday will see us all go to the polls to decide on who will be leading the country.
Although housing is not top of everyone’s agenda this time around, it’s still an important subject that many home owners, and soon to be first time buyers, are watching very closely.
But has the general election impacted houses so far and will it cause any significant changes once the election has taken place?
Has the general election affected house prices so far?
Several years ago, house prices were increasing rapidly which was great news for current owners but not so much for those looking to step onto the housing ladder.
In 2023 and 2024, prices have really slowed. Many industry bodies have suggested that prices are still rising but nothing like they have been doing. We reported in June that house prices had risen 0.4 per cent just in time for summer. And in the last 4 weeks, house prices have risen again by 0.1 per cent, exceeding expert predictions.
But is the election the root cause? The team at Benwell Daykin estate agents don’t necessarily think so.
There is talk soon of interest rates lowering and that positive news could be restoring further confidence in the market.
Will the election alter house prices after July 4th?
What about after the election?
If the polls are correct, it looks like we’re soon to have a new government in place and yes, this could put some energy into the market.
Looking at historic data, however, the team at Benwell Daykin aren’t expecting much to change.
Nationwide have too done some research and they have concluded that after the past general elections there hasn’t been any real volatility in the market. Big price movements tend to come with other economic trends.
Nationwide also extended their research to mortgage approvals and again, there was no significant change in the amount of mortgage applications and approvals during and immediately after an election period.
Having said this, other research conducted by Compare my Move did conclude that house prices roses by an average of 4.6 per cent following a general election.
What can we conclude?
By using our knowledge and the above research we conclude that there won’t really be a significant impact on house prices when it comes to the election.
There may be small changes but on the whole, we’re not going to see a huge amount of volatility.
Bigger things to watch out for which may alter house prices significantly would be a change in inflation or a large drop (or increase) in interest rates once again.
What do you think yourself? Let us know your thoughts.
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