Conservative win could lead to a boost of confidence in the housing market!
The Conservatives have won a landslide majority in the 2019 general election after the party swept aside Labour in its traditional heartlands.
After his election win, Prime Minister Boris Johnson has renewed his vow to take Britain out of the EU on January 31st 2020.
But what does this result mean for your property? And will it push house prices up?
Return to confidence
Housing market activity has been on hold while potential buyers and sellers waited for the political situation to become clearer. Boris Johnson's landslide win could mean there will be more stability in the housing market, with home owners set to benefit from the result - at least in the short term.
Brexit as well as the political uncertainty around it in the UK have been driving prices down with potential buyers and sellers waiting for the situation to become clearer. The result of the general election will not only end the political uncertainty, but it will also offer more clarity on when the UK is likely to leave the EU.
Property experts now expect those who have been holding off to go back to doing deals potentially driving house prices up. Expect a sharp uplift in transaction levels starting early in the year, as buyers and sellers who have played it safe put their plans into motion.
Rightmove have predicted a rise of 2% for 2020, although at Neil King, we feel the number for our area is closer to 5%. In just the few days since the election result was announced, we’ve already seen a rise in the number of properties coming to the market.
Although a lot of the hard work around Brexit has yet to be done, there is now a political stability that will give a lot of people the confidence to get on with their lives. The most important thing for the housing market is that the result brings some stability, albeit short-term at least until we see a clearer timetable for Brexit.
This should generate a return of confidence to the market, which is what we have been looking for. The end of uncertainty also means prices are likely to grow next year.
What does it mean for first-time buyers
Some of the Conservative Party commitments are good news for inspiring first buyers. Boris Johnson has previously emphasised his party's support for homeownership and their focus on helping first-time buyers.
The party's election promises included creating one million homes of all types in the next five years, a review of the Help to Buy equity loan and “simplified” shared ownership.