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After weeks of anticipation, the general election is finally over, and the big news is out! The UK has a new Labour government, elected by a landslide. Whether you're thrilled, disappointed, or indifferent, the completion of the election is undoubtedly positive news for the property market.

What Does This Mean for the Market?

Property markets thrive on stability, and the end of election uncertainty provides a clearer picture of government plans for the next five years. Historically, we often see an uptick in the property market post-election, regardless of the outcome. So, as we move past the summer holidays, we could witness a market bounce.

Mortgage Rates and What to Expect

A key factor to watch is mortgage rates. Many experts predict that the Bank of England might start lowering its base interest rate now that the election is behind us. There's speculation that rates could drop from 5.25% to 4.5% by the end of the year and potentially reach 4% by the end of 2025. Lower mortgage rates mean cheaper mortgages, potentially encouraging more people to consider moving.

Labour's Housing Proposals

Labour has ambitious housing plans, including building 1.5 million new homes and increasing affordable and social housing over the next five years. These measures aim to invigorate the property market, though they will take time to implement.

For renters and investors, Labour plans to reform the rental market, promising more regulation for landlords and greater security for tenants. Additionally, Labour intends to further reform the leasehold system, which could benefit those involved in leasehold properties.

First-Time Buyers

First-time buyers are crucial to the property market. Labour's proposed Freedom to Buy mortgage guarantee scheme aims to help first-time buyers secure mortgages with just a 5% deposit, similar to the existing Help to Buy schemes but designed to be permanent. This initiative could assist around 80,000 young people in purchasing homes over five years.

Financial Implications

The new government has pledged not to raise income tax, National Insurance, or VAT, though other taxes like capital gains tax, inheritance tax, and council tax remain uncertain until the new Chancellor’s budget.

Should You Buy, Sell, or Move?

So, what does this all mean for you? Whether buying, selling, or moving, it's essential to consider your personal circumstances first. A good estate agent can provide valuable insights into the current market, helping you make informed decisions.

If you're thinking of selling, we can offer an estimate of your home's value and strategies to attract the right buyer. If you're looking to buy, we can help you explore options within your budget.

Its easy to get in touch with us if you are considering a move now that the election results are in. We're here to help you navigate the market with confidence.

Katie Griffin