After the Conservatives recorded a superb and unexpected majority triumph in last week’s election, experts are predicting a rise in UK house prices.
It is anticipated that investment in property in London will rise sharply with insecurities over the future of the market now dispelled. This is believed to see more overseas buyers taking the decision to purchase homes, without the risk of a mansion tax being introduced.
‘Bun fights’
Edward Heaton of Heaton and Partners property search agency predicts that house prices for prime country properties could see an increase of up to 10% in just a matter of weeks. Heaton said that, ‘there will be bun fights in the next few weeks for the best houses which come to the market as confidence in the top-end of the regional market returns.’ [1]
Mr Heaton continued by saying that, ‘for many operating in the prime property market, there is a palpable sense of relief at the election outcome as there were some genuine concerns about the possible impact of mansion tax tied in with the attack on non-doms proposed by Labour.’[2}
Stability
Michelle van Vuuren, managing director of residential development at Sotheby’s International Reality UK, believes that a Conservative victory will pave the way for much needed stability in the housing market. ‘The removal of the uncertainty that has clouded the last year of the coalition will allow developers to plan confidently for the medium term with a consistent economic policy.’ However, she did go on to state that the country needs the Tories to, ‘ come good on their annual pledge of 200,000 new homes and freeing up brownfield sites for development.’[3]
Van Vuuren believes that, ‘increasing the supply of homes is the only way to truly overcome the hurdles that the housing market places for the majority of buyers.’ Continuing, she said that, ‘a cessation of the clamour for a mansion tax will see a number of transactions that have stalled to come back on line as a certitude creeps back into the market.’[4]
Relief
Chief executive of Marsh and Parsons, Peter Rollings, believes that the outcome of the election means that buyers and sellers alike can plan more easily. Rollings said that, ‘the top end market will be breathing a huge sigh of relief that £2 million plus properties won’t be penalised by a mansion tax, a levy that would have stifled activity in the capital and across the South East.’[5]
Mr Rollings suggested that, ‘any such tax could also have had implications on lower rungs of the property ladder, so it is not just wealthier homeowners who should be counting their blessings. The post-election feel good factor could kick in immediately and 2015 may prove to be a reversed version of 2014 in starting slowly and finishing strongly.’[6]
[1-6] http://www.propertywire.com/news/europe/uk-property-market-election-2015050810486.html