The UK’s Prime Minister, Theresa May, has announced that she’s seeking a snap general election on June 8 as the country is in need of certainty and stability. But what will this mean for Britain’s housing prices?
As if the UK, and its property buyers and sellers, haven’t had enough uncertainty yet, Mrs. May is throwing another one in the mix by attempting to push the General Elections forward.
Originally, elections were supposed to be held in 2020, however, after a rocky road ever since the referendum decision, the PM is hoping to create certainty, stability and strong leadership by having the election early.
What does this mean for the country’s housing market?
The actual impact of this early election is hard to forecast, all that can be done is to look at how things worked out in the past. And take notes.
Alison Platt, chief executive at estate agent Countrywide, told City AM that “past trends show a clear correlation between general elections and the level of transactions in the property market.”
She also pointed out that there is a difference between usual General Elections and this one: The long lead up. An average lead up of about six months prior to other elections will be condensed down to six weeks in this case.
This shorter time frame means any consumer hesitance will have a lower impact on overall transactions, Platt concludes.
Once the vote is over, things are more than likely to pick up again.
The highest levels of investment can usually be seen in the first three months after a new Government has been elected.
Ed Heaton, founder of property search agency Heaton & Partners, agreed:
“I see the decision to hold a General Election in June as a positive for the property market, particularly as the snap nature of the announcement, means that there has been no long build up with buyers and sellers wanting to hold off.”