After Theresa May called a snap election on Tuesday, much of the country was in shock. Having had a few days to recover, Arthur now takes a look at what this may mean for the property industry in Britain.
The Conservative party have called for a General Election a mere two years after they were victorious. However, those two years have been tumultuous to say the least and Theresa May is now seizing the initiative against a weakened opposition and hopes to significantly increase her majority in the House of Commons. Due to the fact the next election was not expected until 2020, the calling of a snap election means there will only be six weeks of campaigning, rather than the usual six month build-up. For the property market, this is a positive.
The previous nine general elections have seen a decrease in property transactions in the months running up to the vote. This is due to the uncertainty over the future of the country and differing policies from each party. But, due to the shortness of the campaign period, this will have a much smaller impact on the market. Furthermore, virtually all polls are expecting a Tory landslide – although pollsters also predicted a remain vote and a Clinton Whitehouse, so who knows.
Following the snap election results on June 8th, history suggests the property market will see a resurgence in activity. Being secure in the knowledge of five more years of rule, home owners are more willing to place their property on the market, without falling foul to any unknown policies. Furthermore, as many see a Tory victory as a positive, they may be more inclined to take the economic risk of placing their property on the market.
However, if the Conservative Party fail to gain a significant majority, there could be a continuance in the current trends of the market. Whilst the market has stabilised since the Brexit vote, it has not increased significantly but instead remained fairly consistent.
Although no party has produced coherent policies surrounding property yet, predictions are already flowing that a Conservative victory is the best scenario for the sector. However, Arthur will keep an eye on the horizon for these policies and analyse them when they are announced.
Don’t forget to follow Arthur on social media for all the latest property news!