With a general election looming, people could be forgiven for putting off making big financial decisions until all the votes have been counted and the political dust settles.
One hotly contested area in political manifestos is property and home building, with both the Labour and Conservative parties committing to build 300,000 new homes a year. This is no surprise as YouGov polling has shown that the type of housing tenure is having an impact on people’s voting intentions, with outright homeowners the only group with the majority intention to vote Conservative.
But for most home buyers and sellers, selling or purchasing a home can’t wait for the political sparring to be over. A recent poll by Savills has shown that 79% percent of people remain undeterred from committing to a purchase or putting their home on the market, despite any market turbulence or house price fluctuations an upcoming general election may cause.
This increased market confidence could also reflect increased mortgage lender confidence in more highly leveraged buyers, with an increase in first-time buyers and a shift away from cash buyers. But how can buyers and sellers try to insulate themselves from any market volatility in the next 12 months?
Forewarned is forearmed
Staying abreast of political developments and party manifestos can be tricky, as can cutting through all of the jargon. Finding a source of easy to understand conveyancing news and information will cut through the noise and tell you what you need to know. Websites such as https://www.samconveyancing.co.uk/news/conveyancing are good options.
Timing
Don’t be surprised if your property viewings slow in the three to four months before an election. Previous elections have shown that house sales tend to slow in this period, but once the results are in and a new government has bedded in, things tend to pick up again. It’s important to note though, that the time of year of an election could also impact this, and buyers should take this into account. Peak home viewing and selling time is spring to early summer.
Keep an eye out for commitments on stamp duty and capital gains
Each of the big parties are yet to make big announcements on either stamp duty or capital gains. These could temporarily stunt the market if either side makes big promises and buyers and sellers bide their time to see who wins, and who also implements their policy, as it’s not a guarantee that they will! Given the uncertainty, if sellers are considering putting their home on the market, right now at least things seem relatively stable.