What does the General Election result mean for the Housing Market?
You may have had enough of Election chatter but the markets have reacted positively to news of the General Election result and whilst early days, many Industry experts are predicting the property market will see a bounce as we enter the New Year.
Traditionally when property stock levels increase as home owners put their properties on the market, prices tend to reduce, but in a market where buyers have also been holding off, we could see demand increase as they return to the market place.
Good stock levels and strong demand means we will undoubtedly see a period of readjustment which in the long term could well see a growth in both transactions and prices.
In the short term there is likely to be a further decrease in the amount of property available to rent as some Landlords fed up with additional taxation, increased legislation and so on look to sell their properties. Demand remains high and therefore it would not be unreasonable to assume rental prices increase slightly in the first quarter of next year before the market settles.
On a wider note there is already speculation that a new Housing Minister will be appointed becoming a Cabinet member with Secretary of State status.
Likely events to have an impact in the short term are the suggested abolition of the Section 21 process, possible stamp duty reforms and a budget in February.
Watch this space…!
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