Property experts have revealed how the upcoming general election could affect the housing market, and whether this will impact moving plans for both buyers and sellers.
The general election will take place on July 4, to decide which political party will come into power in the next. Housing has been high on the agenda for some of the parties, with Labour and Conservatives vowing to make changes.
Some of the policies mentioned include introducing schemes to benefit first time buyers, pledges to make new homes more sustainable, as well as making housing more affordable.
Experts at Rightmove have analysed how the general election could affect the housing market and whether people are still going ahead with their move. And according to their data, 95% of people planning to move home said the upcoming election will not affect their plans, despite the uncertainty.
Property expert, Tim Bannister, said:
“With the date now set for a summer general election, we anticipate that housing market activity will remain steady in the lead-up to the election based on previous patterns. This is further supported by the current attitude among home-movers, with the majority indicating that the election will not affect their plans.
“Over the past four years, home-movers have faced numerous challenges, including a global pandemic, a shortage of housing supply, and rapidly changing prices. For many, 2024 is finally the year to make their move, and they’re determined to proceed with their plans to secure their next home,” he adds.
What happened around past elections?
Rightmove also looked at what happened in the housing market in previous general elections, in 2015 and 2019. They noticed that the market remained steady, both before and during the election period, and there was in fact an increase in activity after the 2015 and 2019 elections.
In 2015, demand from buyers was consistent leading up to the election, which was held in May. Demand then increased the following month, and was 18% higher than the year before.
Meanwhile, in 2019, demand remained stable in the months prior, and saw an annual increase of 13% in the December election month. This was followed by an annual increase in buyer demand of 14% in January 2020.
Rightmove explained buyer demand is measured by looking at the number of people sending enquiries about homes for sale on Rightmove.
Tim bannister added:
“Previous elections would indicate we may be set for a particularly strong summer once the election is over, especially if interest rates start to fall.
“However, every election is different, and it would depend on whether any significant housing policies are also introduced, so we’ll need to wait and see what happens to have a better view of activity for the rest of the year.”
What needs to change in housing?
Property experts at Rightmove have also addressed the upcoming election, and stated what they believe needs to change in housing the most. Some of the top issues they have said include the following:
- Accelerate house-building
According to Rightmove, the next government needs to accelerate house-building for sale and rent, along with longer-term solutions to help more people afford to buy their first home.
- First-time buyer support
According to Rightmove’s study, more support for first-time buyers was the most requested change among renters from the next government.
Experts said stretched affordability and elevated mortgage rates in recent years have made it challenging for people trying to pay high rent costs, save for a deposit, and earn enough to pass affordability tests.
- Stamp Duty Reform
The biggest change that homeowners and agents would like the government to introduce is a reform of the stamp duty system.
The experts said the barrier that stamp duty presents, especially in higher-priced areas, could be preventing thousands of people from moving. If a new stamp duty system took into account regional property prices or helped encourage more people to downsize, it could help movement in the market.
- Greater green incentives
Green incentives were the third most requested change of the next government from home-owners.
Experts say the focus on helping people make their homes greener has fallen off the government’s agenda in recent years. A proposed deadline for landlords to improve homes up to an EPC rating of C was scrapped, and at present, there is a lack of awareness among homeowners about what changes they should make and why.
- Simplifying & speeding up the home-buying process
Rightmove’s study also found that homeowners want ways to simplify the home-buying process. At present, figures show it is taking over seven months on average from when someone puts their home up for sale until they move. This is leaving homeowners left to navigate a complex and frustrating process.
Rightmove’s legal expert David Cox says:
“It’s vital that the next government works closely with the property industry to come up with standardised solutions to help speed up the home-moving process, to benefit both home-movers and agents.
“Digitisation is key, and there has been innovation in this space, but it also needs a solid focus from the next government. A well-developed and adopted solution has the potential to not only accelerate the home-buying process but also encourages a less stressful, better understood and more seamless transaction for home-movers.”
Further reading
Purchases – Oakwood Property Solicitors
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