House price growth is to follow the general election results as the Conservative victory brings certainty back into the property market.
The UK election results removed the fear of a mansions tax hitting London house buyers for properties worth over £2m and brought a huge relief to buy-to-let investors that had been threatened with rent controls.
Uncertainty for many homebuyers had caused a slowdown since the start of 2015 and had almost stalled sales at the top end of the market. As a result of greater certainty over economic policy the share price of the mainstream London agencies as well as UK house-builders has moved up the stock markets and most of London estate agents have since seen renewed activity.
The activity is likely to increase in prime London triggering a renewed ripple effect into the market beyond the capital and property prices are predicted to rise swiftly. Still, it is the non-prime property, both inside and out of the Capital, which is expected to sell in greater numbers as buyers return. The prices could weaken with the increased supply as many potential sellers bring properties back on the market. However, any reduction in the price growth will not last long due to the chronic shortage of new housing supply.
Many within the housing industry, analysts and estate agents would expect the same stable conditions for professional investors willing to commit to the build to rent sector which will increase availability and provide a higher standard of accommodation to let.
The election outcome leads to a positive political and economic environment for housing. There is a commitment from the Conservative government to support first time buyers through some 200,000 new homes to be sold at a 20% discount, to build an additional 274,000 affordable homes and to extend the help to buy equity loan scheme. In order to deliver its manifesto the government will have to urgently tackle one the most immediate problems London and the South East is facing: the shortage of new built homes.
We at JOHNS&CO have a number of properties for sale and to rent in some of the UK’s most prestigious and popular developments – ranging from Embassy Gardens at Nine Elms, to schemes such as Royal Wharf and London City Island over to the East which are predicted to be some of the most exciting and appealing property hotspots in the near future.
For more details about London properties to buy or rent contact us today:
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