I have to say, along with everyone else it seems, it was a completely unpredicted and surprising General Election night, a very much “out of the blue and in with the blue”.
Despite the mounting evidence, straw polls and, er, people threatening to eat marzipan hats, and widespread prophesising that the result would be exceptionally too close to call – along with pronouncements that there was sure to be urgent talks within the main parties to who could agree allegiances with who in order to form a coalition – meant it came as rather a jolt that the Conservatives walked back in Number 10, and this time with a majority.
It is standard in the lead up to a General Election that the mood is wary across the land in many aspects. The housing market is certainly no different because many buyers and sellers decide to do a spot of sitting at red until they know what they are facing ahead. One of the major concerns pre-election was what a future Government would do for the housing market and, whatever your political standpoints, the marketplace undoubtedly profits from a stable Government, as doubt always puts large obstacles in the way.
However, now that is it done and dusted and we do not have to hold on further to see who pairs up, I can confidently predict – with more certainly than the vote outcome! – that buyer activity will now see the green light and drive forward, in particular for the larger family homes that had been notably stationary in the run up to the vote.
The prime reason for being stuck on amber in this specific area was due to the lurking phantom of the controversial “Mansion Tax”, which I was never in favour of, as it raised such a small amount of cash whilst killing aspiration and without doubt cast its large shadow on properties with a value of £2 million plus. With this plan now firmly in the bin, this end of the market will now clearly benefit with people encouraged to again consider moving and, additionally, the knock-on effect will be seen throughout the whole housing range.
There is an important unknown, however, and a key one, which is whether the housing stock levels will now improve. If they do then that would be a very positive situation, if they don’t then I would say that now would be an ideal time to take advantage of the increase in buyer bustle and an opportunity to achieve an excellent price.
I will repeat from my previous post, because it’s essential, that I support policies not parties. In their new term the Government must let market forces work, lift unnecessary restrictions, not murder inspiration and have to build more houses.