Expert Overview
Elections do create ripples in the property market. But it is not as simple as prices soaring with one party or plummeting with another. While the initial change creates some fluctuations, the deeper market keeps ticking along as it always has. While a change in government might lead to a brief flurry of activity or a moment of hesitation, the bigger picture – the number of homes available, the eagerness of buyers, and the overall economic climate – truly shapes the future of the property market.
Imagine 100 homes changing hands in the month of the election. Now, picture the months before and after: would you expect a noticeable difference? In most UK property markets, the answer is no. Elections don’t seem to rock the boat that much.
The one exception? High-end London real estate. Here, a flurry of activity often precedes the big vote, like everyone’s trying to secure their dream home before the political landscape shifts. But once the votes are cast, things usually return to their usual rhythm.
Even looking at quicker indicators, like when people get the green light for their mortgages, there is no clear sign that elections cause a frenzy or a freeze. The market keeps ticking along, seemingly unfazed by the drama unfolding in the political sphere.
What Landlords and Sellers Need to Do
Landlords should stay up-to-date on the ever-changing landlord laws. By staying informed, you are not just following the rules; you are taking a proactive approach to help avoid costly surprises. With a likely change of government, keeping up with new policies will help you navigate tenant disputes and avoid legal battles that could occur in the future.
As property buyers and sellers prepare their next moves, it can help to understand past election trends to capitalise on market momentum. While it is true that a small percentage of property buyers will continue to wait and see, as they do at times of political or economic uncertainty, they will always be vastly outnumbered by buyers and sellers encouraged by the strengthening economic outlook.
Here are some valuable resources for landlords who want to stay informed about UK housing policy:
- GOV.UK: The official government website is a primary source for legislation, consultations, and guidance on housing issues.
- The Ministry of Housing, Communities & Local Government (MHCLG): This department is responsible for housing policy and provides updates and resources specific to the private rental sector.
- Your Local Council Website: Check your council’s website for local housing regulations, licensing requirements, and specific schemes in your area.
- National Residential Landlords Association (NRLA): The NRLA offers comprehensive guidance, training, and resources for landlords, including updates on policy changes.
- British Landlords Association (BLA): The national association fighting for the rights and interests of residential and commercial landlords across the UK.
Conclusion
In conclusion, the UK property market in early 2024 presented a mixed picture of optimism and apprehension. Positive economic indicators such as lower inflation, moderate house price growth, and the anticipation of a base rate cut were tempered by the surprise announcement of a snap general election.
While political uncertainty has historically dampened market sentiment, the question remains whether the UK population’s recent experience with turbulent events has increased their tolerance for such instability.
Despite the political upheaval, the property market demonstrated resilience in the first four months of the year with a rise in listings, sales, and overall activity. The coming months will reveal whether this resilience can withstand the added pressure of a general election and what the future holds for the UK property market.