Will the snap election affect the property market?
Why is the property market an issue in this election?
Property has played a huge part in UK politics throughout the years and with a shock general election called just a few weeks ago, many parties are using this as a strong focus in order to gain a majority vote. The announcement of a snap election may have come as a shock to some, but it has also allowed many parties to revisit their policies.
While the election itself is has not had a significant impact on the market, the result of the election could be a different matter. It’s fair to say that there have been some major shake-ups to the UK policies in regards to property in recent years, particularly when it comes to buy to let and tax changes. One key focus for many, is the shortage of housing across the UK and what the government is planning to do to ensure they provide the homes needed across the country.
What is each political parties stance on housing policy?
- In regards to the housing shortage, the Conservative Party have promised to keep their pledge to deliver a million homes by the end of 2020. They have also announced they plan to construct a further half a million homes by 2022.
- Labour have also pledged one million homes to be built over the next five years if they were to win the election, with 500,000 of these homes earmarked specifically for council and housing association. Also looking at social housing, Conservatives claim they will introduce greater flexibility for housing associations, allowing better deals for local authorities to build.
- Liberal Democrats are looking to increase their house building target to 300,000 homes a year with a mix of homes available to be built for both sale and for rent.
- The Conservatives also want to modernise the property purchasing process. This is in the hope that practices will become efficient and less costly. They’re also looking to tackle the structure of ground rent charges on leasehold properties.
- The Labour Party claim they will tackle increasing rents and look to introduce more three year tenancies across the board. They’re also promising to scrap bedroom tax, the ban on long term council tenancies and want to encourage tenants to report landlords who provide sub-standard housing.
- Other parties have been looking at renters too, as the Conservatives are looking at improved protections and security for what are considered “good tenants”. Landlords would also be encouraged to offer longer tenancies.
- One to note for buy to let landlords - the Liberal Democrats, are looking to introduce inflation-linked rent increases and rent hike limits. They’re also pledging to scrap lettings fees and cap deposits, with Labour also pledging similar policies on this.
With these points in mind, it’s important to remember that even with the mortgage tax relief changes and stamp duty increases, buy to let is still the most viable investment option in the UK, as no other investment type offers the same level of returns that property can. Despite some economic changes, there are still more first time investors than ever entering the buy to let market. Savvy landlords will know that by investing wisely and in the right locations, and keeping up to date with regulations, a property will continue to deliver good returns.
At Sequre, we negotiate genuine discounts on deals and have a full due diligence process in place to ensure our properties offer a strong return on investment. Many of our properties are completely exclusive to Sequre and off-market, so you won’t find them elsewhere. To speak to a member of our team to find out more about how buy to let can work for you, call us on 0800 011 2277.