Election results - what's next for the property market?
A 2015 win for the Conservative Party
The 2015 General Election saw the Conservative’s take the majority of the public vote and while all parties had differing policies, the housing market was a priority for the majority of them.
Now that the campaigning for votes is over, the Conservative’s policies are expected to be put into place which aims to deliver a stronger economy. By their own admission, it is unusual to deliver two Budget announcements within the same year however a ‘stability’ budget will be delivered on the 8th July which will ‘put Britain into good shape for the long term’ and outline key plans of the Conservative party over the next five years.
What’s next for the housing market?
Help To Buy
The coalition government already led the way for first time buyers with the launch of the Help to Buy scheme, which allows first time buyers to purchase a home with just a 5% deposit. In a further bid to help first time buyers get on the property ladder, the 2015 Budget saw the Chancellor announce the Help to Buy ISA. The new initiative will allow the government to contribute £50 for every £200 a new buyer saves for a mortgage deposit, up to a maximum of £15,000. Essentially, this gives first time buyers the ability to save £12,000 and then receive a £3,000 lump sum from the government. As well as this, the new government plan to create 200,000 new starter homes marketed at 20% discount for first time buyers, an increase of 100,000 more than they agreed to build in 2010.
As house prices in the UK have continued to improve since the coalition government was formed in 2010, prices are set to continue following an upwards curve for the foreseeable future. In the run-up to the election, many buyers tread cautiously as reports of an uncertain future along with the threats of mansion tax and rent caps created a sense of nervousness. There was also a potential threat to international investors as opposing parties were looking to increase tax for overseas buyers which could have resulted in a severe dip in UK house sales.
However, now experts are forecasting a stable market for both UK and international buyers and we should continue to see a healthy and sustainable property market going forward.
- Low mortgage rates
For the past few months leading up to the election, mortgage rates have been at record lows. Mortgage lenders have been offering extremely competitive prices, with rates falling to below 2% for a two year fixed mortgage. This is a great boost to home owners, first time buyers and investors alike.
- Stamp duty reform
In last year’s Autumn Statement, a new stamp duty structure saw the old slab system abolished in place for a new one. It was brought in with immediate effect with the aim to see 98% of the population pay less tax on a house purchase. The effects of the reform are still being seen in the housing market as individuals save thousands on their stamp duty payments, with house sales surging as a result.
In the current climate, we are looking at a strong and positive future for the property market. Although housing supply has been a concern in recent times, the Conservative party are aiming to address the issue and rectify it to within their means. The economy has recovered well and experts are forecasting further house price increases and a high rental demand across the UK, so now is a great time to invest.
If you’ve been considering a buy to let investment, contact Sequre today. We specialise in sourcing property in bulk at discounted prices and our team of experts can help find an ideal property to suit your investment needs. Whether you’re a cash buyer or purchasing with a mortgage, we can recommend financial advisers to discuss your options and guide you through the lending process. To find out more, call 0800 011 2277.