Will the Election have an affect on the Housing Market? |
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7th April 2010
In short - no. The fact is that many voters may wait to discover the outcome, but many wont know what they are waiting for. Yes, there will be new policies and changes to legislation, but as with the Conservatives promise to abolish HIPs, this will all take time. When we wake up on 7th May, nothing much will have changed.
Elections are decided by those who don't vote rather than those who do. The fact is, many eligible voters just don't bother as they just don't see that anything will actually change. Many of the people with whom I speak seem to believe that the UK doesn't have enough 'clout' to have an impact on what was a global recession. Job security is more driven by global forces such as import / export, exchange rates etc and this is a real issue to many.
What is really determining the Housing Market is the traditional market force dictated by supply and demand - not party politics. The Government in their wisdom offered a limited Stamp Duty holiday for first time buyers but added a pre-determined timescale for this benefit. This will only serve to force a surge of activity when it nears its end and as with the abolition of 'double MIRAS' will only help to fuel price increases. This is a concern as I recall only too well the consequences of the same.
Yes, buyers and sellers will be distracted by the election and there may be a brief pause in activity, but as all main parties policies are well documented, the effect will be minimal and short term.
Lets be honest. If you have money to invest, would you be happy with a fraction of a per cent in a bank knowing what we know now? Stock and shares are precarious and more sensitive to political influence and Government legislation. Property offers a real chance of capital growth in the medium to long term, interest rates remain low and yields offer better returns than most other types of investment underpinned with more robust levels of security.
Perhaps this election offers a window of opportunity for serious buyers whilst those concerned at the outcome procrastinate and reduce the level of competition. Just a thought!
