The Labour Party has enjoyed a landslide UK General Election victory this month – and even returned Ruddington’s first Labour MP in over half a century.
Although housing was not top of everyone’s agenda this time around, it’s still an important subject that many home owners, and soon-to-be first time buyers, are watching very closely, writes Benwell Daykin Estate Agents.
But has the General Election impacted house prices already, and will it cause any significant changes now the election has taken place?
Has the general election affected house prices so far?
Several years ago, house prices were increasing rapidly; which was great news for current owners but not so much for those looking to step onto the housing ladder.
In 2023 and 2024, prices have really slowed. Many industry bodies have suggested that prices are still rising but nothing like they have been doing. We reported in June that house prices had risen 0.4 per cent just in time for summer. In the last four weeks, house prices have risen again by 0.1 per cent, exceeding expert predictions.
But is the election the root cause? The team at Benwell Daykin estate agents don’t necessarily think so. There is talk soon of interest rates lowering and that positive news could be restoring further confidence in the market.
Will the election result alter house prices going forward?
What about after the General Election? We’ll soon have a new government in place and yes, this could put some energy into the market. Looking at historic data, however, the team at Benwell Daykin aren’t expecting much to change.
Nationwide has done some research, too, and it has concluded that after the past General Elections there hasn’t been any real volatility in the market. Big price movements tend to come with other economic trends.
Nationwide also extended its research to mortgage approvals and, again, there was no significant change in the amount of mortgage applications and approvals during and immediately after an election period.
Having said this, other research conducted by Compare My Move did conclude that house prices rose by an average of 4.6 per cent following a general election.
What can we conclude?
By using our knowledge and the above research we conclude that there won’t really be a significant impact on house prices due to the election. There may be small changes but on the whole, we’re not going to see a huge amount of volatility.
Bigger things to watch out for which may alter house prices significantly would be a change in inflation or a large drop (or increase) in interest rates once again.
What do you think yourself? Let Benwell Daykin know your thoughts.
Find out how much your property is worth.
Simply ‘phone Benwell Daykin on 0115 990 2007, call in to 12, High Street or use their house valuation form >>HERE<< to get in touch.
