Property expert David Leake of Housesetc explains how the snap general election could put an already slowing housing market on pause.
The property market could be put on pause this summer as potential home buyers sit it out to await the outcome of the general election. There have already been signs in some parts of the country of the housing market slowing down in recent months amid signs of consumer caution over the uncertain poorly performing economy and the impending chaos of the Brexit negotiations.
Unpopular changes to Stamp Duty resulted in many investors being required to pay an additional three per cent which has also led to weakened demand for buy to let properties across our area.
The Royal Institution of Chartered Surveyors (RICS) recently reported that the number of properties sitting on estate agents’ books has fallen to a record low amid uncertainty in the housing market, however many private buyers had appeared undeterred prior to the announcement of June’s election but watch this space!
The housing market is going through a sluggish period at present and an election will clearly only add to the uncertainty prevalent in the country today. Homeowners considering a move have traditionally not been put off by such surprise snap elections, however they may decide to defer their plans for a short time.
The period of indecision will be ongoing until the election in June – thankfully this is a relatively short period. Inevitably, a lot of decision-making will be put on hold – particularly as the polls fluctuate. That decision-making without a doubt will include the decision to buy and sell property which will in turn slow down the housing market.
The housing market in general does require support from the Government. I feel that the provision of affordable and good quality social housing is a right everyone in our society should have.