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Jamie Hutton

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As we all now know, we have a new Labour government in the UK, with the party winning by a landslide last week.

Regardless of our feelings towards politicians, the fact that the election is over means that the property market will inevitably settle.

This is simply because property markets don’t like uncertainty. And, just before a big change, like a General Election, homeowners, landlords and investors tend to take a pause before figuring out if and how much the change will impact their purchasing decisions.

History also tells us that property markets tend to pick up after elections - regardless of the result. But let's discuss if aspects of Labour's manifesto will impact us in the property industry...

What has been promised?

Labour has promised to deliver 1.5m new homes over the next parliament, so we’ll wait to see which schemes are fulfilled to help first-time buyers onto the property ladder and if any stamp duty cuts are confirmed too.

Will mortgage rates be impacted?

Most experts have been predicting the Bank of England’s (BoE) base interest rate will fall this year. But the impending election was likely on the BoE’s mind when they decided to keep it on hold last month. Now it’s out of the way, they might decide to start decreasing rates… perhaps as soon as their next meeting on 1st of August.

A report by The Times Money Mentor tells us that forecasts show the interest rate going down

from 5.25% to 4.5% by the end of the year. And, according to an analysis by Capital Economics, rates will hit 4% by the end of 2025.

If mortgage rates follow suit, mortgages could become cheaper fairly soon, making it more appealing for anyone considering moving/buying

And in the rental market...?

From what we've heard, the leaders in Labour have plans to reform the rental market, too. However, details of what they will do have yet to be finalised and/or announced. If you’re a landlord and you’re looking for some advice, click below. Or feel free to get in touch for a chat, we’re always open for advice and discussion.

What's New For Landlords?

It’s decision time…

So, is the new government good news or not-so-good news for homebuyers and sellers? If you're considering moving, should you buy or sell this year?

We now have a clearer picture of what to expect in the coming years. However, history tells us not to worry too much about political promises if we’re considering a move. Focus on your personal circumstances: ask yourself if you need to, want to, and can afford to move. Make the decision that is best for you.

As always, consulting an honest industry expert is the best way to help you make an informed decision.

Best wishes,

Jamie

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