After Theresa May ‘shot herself in the foot’ somewhat by calling the general election, Arthur investigates what effect this will have on a fragile property market.
The housing market is like a young child, it loves security. Therefore, the promises of ‘strong and stable’ government, via a large Conservative majority after the General Election, was music to its ears. However, the promise was not to come to fruition. Instead, the market must wait and see whether Theresa May can cobble together a majority by working with the DUP of Ireland. If this is managed, the Prime Minister will still have a tough time passing her legislation as the deal will likely be on a policy by policy basis.
Whilst the manifesto promises made by the Conservative party during the General Election were far from ground breaking, they can now expect a lot harder scrutiny from the opposition, especially with regards to the current housing ‘sell off’. Labour created a housing policy packed full of reform and promises, particularly with regards to social housing and homelessness. Whilst Labour’s progressive policies rang home with a lot of voters, especially the young, it struck fear into the hearts of many in the property business.
After a tumultuous few years, that have seen changes to stamp duty, letting agent fees and many more issues, property professionals are hoping that there will be no more changes in the near future. Many are struggling to ensure they are complying with the current rule changes, more could be catastrophic. Instead, the consensus is that there should be a period of stability with regards to the housing rules, thus allowing people to come to terms with the changes that are currently being implemented and see how the land lies.
This, of course, may not be possible as Brexit negotiations are due to start soon, which may throw the British economy off kilter and force some more invasive policies from the Government.