Buyers and sellers look for certainty after election

Kirsty Mcluckie finds voting dulls the housing market

Whether you are fascinated with the daily wallto-wall coverage of manifesto launches, political gaffes and wildly fluctuating opinion polls surrounding next week’s general election, or have resorted to turning a deaf ear to candidates’ increasingly imploring promises, if you are currently attempting to buy or sell a property, you might have more reason than the rest of us to look forward to it all being over.

In just over a week the country will know the make-up of the next government and for the housing industry, and those currently contemplating a move, it seems the results can’t come quick enough.

Political uncertainty can have an effect on individuals making plans for their households and over the last few years we have had more of it than many might feel we deserve.

There have been lulls in property sales leading up to the Scottish independence referendum, the Brexit vote and now the general election seems to be having an effect on those with big property decisions to mull over.

The National Association of Estate Agents (NAEA) has issued its latest housing report and suggests that the snap general election is having an effect on both buyers and sellers.

According to NAEA’S figures, the number of house hunters registered per branch fell to 381 in April.

Supply of available housing also dropped, as sellers chose to delay marketing their homes amid election uncertainty.

In March, there were 397 homes available for sale per branch across the UK, down from 425 in January and February, but this figure dropped a further 4 per cent to 381 in April.

The report says this is most likely down to uncertainty triggered by the election starting to take effect, as buyers put their plans on hold until the result is clear.

This trend reflects a similar drop last year, when we were voting on European Union membership.

In April 2016, amid Brexit uncertainty, the number of house-hunters searching for properties was 17 per cent lower at just 325 per member branch.

Mark Hayward, chief executive, NAEA Propertymark says: “Periods of political uncertainty tend to halt activity in the housing market, and this is exactly what we’re seeing this month.

“All of the main political parties have outlined significant housing promises in their manifestos and we’d hope to see these policies rolled out in the new government’s first six to 12 months in parliament.

“Buyers and sellers alike are recognising this and adopting a ‘wait and see’ strategy to decipher how or if the value of their existing or future homes will be affected.

“However, despite the fact that increasing housing stock is playing a part in the election campaigning, more often than not we find these pledges are unachievable and turn out to be empty promises.

“It’s therefore important that the market doesn’t totally stall as this could trigger an unintended domino effect, which we could still feel the effect of years later before supply increases.

“A business-as-usual approach will ensure house hunters are met with a healthy supply of properties to view, and sellers get a fair price and a good buyer.”