What does a “snap General Election” mean for the property market?
We have already been asked what impact Theresa May’s decision to propose a “Snap General Election” on June 8th this year, will mean for the UK’s property market.
Later today, under the Fixed Term Parliaments Act passed under the last coalition Government, Theresa May will seek a motion to call a General Election on 8th June. This motion will require two thirds of MP’s to support it, but with the Liberal Democrats and Labour Party saying the will support it, the outcome should be a formality.
So, what does that mean for the UK’s property market?
The property market has already withstood some heavy challenges in the last year. The introduction of Stamp Duty surcharges for ‘buy to let’ investors and second home owners, Brexit and more recently tax relief on ‘buy to let’ mortgages and although many reports are suggesting an easing of house price acceleration almost all agents are reporting continued house price growth.
In the lead up to Brexit and the immediate aftermath, there was a huge amount of uncertainty in the financial markets but house prices have continued to climb – so if Brexit didn’t adversely affect the property market, we’ve no reason to believe a General Election will.
We strongly believe that the local property market will continue to thrive for a number of reasons. The supply of property to the market remains slow with competition to buy and demand remaining strong. Often Chilterns are dealing with multiple offers on the same property. Interest rates remain very low, meaning that the cost of borrowing has never been so attractive to buyers and finally mortgage lenders are asking for lower deposits.
Theresa May's address to the country can be seen here: