It’s barely a month until Britain goes to the polls – again – and while some people like Brenda from Bristol have reacted with dismay, there’s no doubt that the campaign and its result could have an impact on the housing market in east London.
Although the opinion polls are pointing to a Conservative landslide on 8 June, a lot can happen during an election campaign, and even if there is a large Tory majority in the House of Commons, that does not mean things will continue as they have done. A new government with a new mandate may decide to reset its policies and housing has always been a hot political potato.
Will the market slow down?
Easter is traditionally the time when London’s housing market hots up. The longer days, the prospect of summer and the hope for somewhat better weather all help buyers and sellers fall in love with a new home.
General elections, however, are usually a drag on housing markets. Uncertainty usually makes people reluctant to take on a new mortgage and some people will hold off on making a decision until after the result is announced.
This time, that seems less likely. Most general elections are flagged up well in advance, creating a month’s-long build-up. This snap election was called just seven weeks before polling day, which is slightly shorter than the time it takes to buy a property.
And there’s much less uncertainty about the result. Few people expect anything other than to see Theresa May back in Downing Street, and even if they’re wrong, the climate of expectation is completely unlike the doubt before the result of the too-close-to-call 2015 election.
What will happen after 8 June?
The result of the election could have much more of an impact. If the opinion polls are right, then the housing white paper published this year is likely to be a blueprint for future government policy. In theory this means more housebuilding in England, but last year the number of new properties actually went down in central London. In east London, more space is available and the property market has been robust. So expect east London boroughs to come under further pressure to allow new build homes.
Both Labour and Conservatives have focused on ‘Generation Rent’, so whoever wins expect further changes to rules for landlords.
The Brexit effect
Of course, Brexit is also having an impact. If jobs in the City of London do go to EU countries then that might exacerbate the slowdown in the higher end of the market. Wealthy buyers are less interested in buying luxury properties, even in Canary Wharf, and that has a knock-on effect on housing chains.
If the Government’s stance on Brexit changes, then that will have a knock-on effect. Optimism about the EU negotiations will raise confidence and probably boost the housing market.
So, in general, the election campaign is unlikely to have a significant long-term impact on the east London housing market. But the result may do – so don’t forget to vote on 8 June.
If you would like to find out more about the current political climates effect on the East London housing market then get in contact and speak to one of our agents today on 0207 739 6969.