General Election 2015: "Excellent" result for the housing market
Date online: 26/05/2015
The housing market heaved a sigh of relief today after David Cameron walked back into Number 10.
Fears of a prospective Mansion Tax and higher rates of income tax if Labour won the General Election left the property market on tenter hooks in the weeks running up to polling day.
"Overseas investors had been threatening to boycott the London market if Labour were elected."
Many buyers had put their purchase on hold, particularly those buying properties above the £2m threshold that would have been hit by the mansion tax if Ed Miliband had come to power.
The cooling of the upper end of the market had inevitably trickled down the rest of the market.
Jonathan Adams, of prime central London estate agency Napier Watt, said: “The election result is great news for London and the UK, as wealthy overseas investors had been threatening to boycott the London market if Labour were elected. The vote has signalled that the UK and London is open to continued foreign investment and is a vote of confidence in the UK economy and its continued path to recovery.
“There is no chance of a mansion tax, no changes to non-dom status and no additional Stamp Duty costs - this is all excellent news and will be hugely beneficial to the top-end of the property market in particular. We expect the property market, which has been rather subdued of late as buyers and sellers adopted a ‘wait and see’ attitude, to now pick up.”
Robert Bartlett, of estate agents Chestertons, said: "With these proposals off the table, and the spectre of political uncertainty finally lifted, we can now all move on. We are already predicting the next few weeks and months will be very busy indeed."
Prices are expected to rise by 5 per cent before the end of this year as a result of the Conservative win, with forecasts from both Halifax and the Centre for Economics and Business Research in this region.
Promises made by the Conservatives in their election manifesto focused on “everyone who works hard having the chance to own their own home”. David Cameron now has another five years to keep good on his word.
The key elements of the manifesto regarding the property market included keeping mortgage rates lower and building more affordable homes - including 200,000 new Starter Homes exclusively for under first-time buyers under 40.
It will also extend the Right to Buy to tenants of Housing Associations and create a brownfield fund to unlock homes on brownfield land. At the same time, local people will have more control over planning, while the Green Belt will be protected.