What will the election result mean for housing in 2020?

27th January 2020 posted in Property News

In the immediate aftermath of the General Election of 2019, there was a “Boris Bounce” in the property market. Prices rose, and buyers were said to be contacting estate agents and registering their interest in buying a home.

This shouldn’t come as a surprise. Many issues affect the UK housing market, but uncertainty has a massive influence on buyers and vendors. You cannot blame people for holding off from making a big decision when there is no clarity in what is going to happen.

The Government has stability in 2020 and beyond

The size of the majority held by the Conservative Government should bring stability to the country, and it should ensure Brexit takes place. January 31st, 2020 is looming, and it appears as though decisions will finally be made. Regardless of your political stance, consistency is key to the housing market, and hopefully, there will be more movement.

Various mortgage lenders have said they experienced an increase in website hits and applications over the festive period. Once the initial enthusiasm after the Election died down, it appears many buyers still held an interest in stepping on to or move up the property ladder.

While there is optimism regarding the housing market for 2020, there is still a need to wait and see how the Government responds. It is likely many buyers will hold off during January to learn more about Brexit, and to see if any trade deals have been agreed.

Will the Government fulfil their manifesto promises?

There is also the Budget, and whether the Government will stand by the promises stated in their manifesto. The Government claims they are open to assisting as many first-time buyers in taking their place on the property ladder. This could see additional support for first-time buyers, and there may be further changes to stamp duty which will affect the overall demand for property in the market.

It is not as if political uncertainty was the only reason people weren’t buying houses. Many industry experts point to a limited supply of homes as being a critical factor in why many buyers cannot find a home. Also, with the cost of property being considerably more significant than the average age, many people cannot afford to buy a home, regardless of the political uncertainty.

It is easy to see why there is more optimism for the property market heading into 2020 than there was in previous years. The removal of a significant barrier should be welcomed, and hopefully, circumstances will allow more buyers to arrange a mortgage and buy a home.

However, there are still barriers and problems for buyers and vendors to overcome. The first few months of the year will show how committed the Government is to help people buy homes. By the end of spring, the circumstances surrounding the market should be more apparent, and hopefully, there will be more optimism for buyers and vendors.

If you want to stay informed of market changes, helping you to make a fully informed decision regarding buying or selling property, please contact Hunters. We have branches across the country, and our experienced team is on hand to assist you with your next property move, so contact us today. If you plan on selling your home in 2020, contact us to arrange a property valuation.