Well it all seems hunky dory with the stability brought by last week’s general election results leading to a flurry of positive reactions from the UK’s property experts.
The Conservative victory has been hailed as a good result for the housing market, particularly in London where the market has slowed amid concerns about a mansion tax and further taxes on rich overseas buyers.
Now that is a thing of the past, at least for the next five years of the next government and already agents have been reporting a rise in inquiries and sales now going ahead that had been put on hold due to the political uncertainty in the run up to the poll.
The election result also led to a strengthening of the pound and the FTSE index which in turn are expected to influence the property market in a positive way.
Experts also point out that the new government is expected to continue its commitment to solve the housing crisis and create more homes. The Conservatives pledged to create 200,000 new starter homes within the next Parliament and a review of Council Tax rates is also expected.
Camilla Dell, managing partner of property agency Black Brick, said that deals were completed the day after the election as conditions in the prime property market swiftly return to normal.
However, there are some concerns on the horizon, most notably the UK’s membership of the European Union and the issue of whether the Scottish National Party, which is now the third biggest, will push for another referendum on independence.
Prime Minister David Cameron is committed to a referendum on the EU and has today moved quickly to say that negotiations on reform of the UK’s membership is already underway. Political experts say that he wants to get such a good new deal that the British people will vote yes to continued EU membership at the referendum, expected in 2017.
He has also moved swiftly to deny that there will be another referendum on Scottish independence. However, Alex Salmond, the former leader of the SNP who is now an MP at Westminster said another referendum is on the cards.
Referendums about the future of the UK will have an effect on the property markets because they create political uncertainty which in turn creates uncertainty among foreign and domestic buyers with people putting off decisions until the votes are over.
So while uncertainty about new taxation on property, particularly at the top end, has gone there are indeed other uncertainties on the horizon. While for now the UK, and London in particular, will continue to be seen as one of the best places in the world to invest in property, at home there are many other issues, with building huge numbers of new homes every year for the next five years one of the most pressing.
For those wishing to invest, the best advice is to do so quickly. There will be, undoubtedly, at least two years of continued growth in the UK property markets, but expect the usual ups and downs along the way with a slowdown around referendum time. Still, the overall messages is positive with the new Government committed to housing being a major issue that it will tackle along with maintaining its already good economic performance