The surprise Conservative majority in the 2015 UK general election has been predicted to be a boost for the UK’s property market, bringing certainty and a predicted boost in investment levels.
On Thursday (May 7th) Brits went to the polling stations in what was expected to be one of the closest elections in a generation. However, by early morning on Friday, it became clear that the Conservatives were on course for a surprise overall majority, with Labour and the Lib Dems being hit hard across the country.
It is expected that the result will allay some of the fears about policy changes that could have damaged the market under a different government, with David Cameron’s impending victory reportedly bringing about many enquiries to estate agents on Friday morning.
“We are already taking calls from international buyers who want to get back into the market,” said Michelle van Vuuren, managing director of residential development at Sotheby’s International Realty UK.
“At the top end – for the next five years at least – a cessation of the clamour for a mansion tax will see a number of transactions that have stalled to come back online as certitude creeps back into the market,” she added, while the Guardian reported that Rokstone were seeing increased calls even as the votes were still being counted.
As well as the fact the mansion tax fears have been set aside, the general uncertainty in the market will be lifted as people worry less about what tax incentives would have been brought in under a new government.
The strong Conservative gains and subsequent majority should therefore mean a return to the norm in the market, after the country’s adoption of more of a wait and see attitude over the first few months of 2015.
In the months ahead, strong demand for rental homes should help to encourage more landlords to come to the market, while we would also expect to see a surge in those who already have sizeable portfolios looking to expand these further looking forward.