There seems to be a raft of positive messages from property experts after last week’s general election. With David Cameron’s place at number 10 confirmed, it is now time for the Prime Minister to set about delivering what he has promised for the UK’s property market.
The Conservative victory has been described as a good thing for the housing market, especially in London, where we saw the market slow down prior to the election due to the threat of the proposed mansion tax and other taxes on buyers from overseas.
Now consumers have clarity post-election, property agents are already reporting a rise in enquiries and sales that were previously on the back burner awaiting the election outcome. It has also been highlighted that the new government are expected to continue with its commitments to solve the housing crisis and create more homes across the UK.
The Conservatives pledged to build 200,000 new homes within the next 5 years and also review the current council tax rates, which should be welcomed.
Not enough homes are being built to accommodate the growth in households and this pushes up house prices. Household projections suggest that the average number of households increased by 210,000 per year since 2008, but in the same period private sector completions have averaged at just 94,000.
So whilst the anxiety about new taxation on property has gone, the Government should now look to focus on their efforts on how to tackle the lack of housing supply by building the thousands of new homes needed throughout the UK. They could take a more flexible look at the Greenbelt and update changes to the planning system for instance.
For any potential investors, the advice at the moment is now is a good time to invest. There will be continued growth in the next couple of years, the overall message is a positive one.