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UK Housing Market Shows Resilience Ahead of General Election

Published by Prerana
Posted Date: June 20, 2024 , Modified Date: June 20, 2024

Despite political uncertainty surrounding the upcoming General Election, the UK housing market is steady, with a minor drop in average house prices. According to Rightmove, the average house price in the UK now is at £375,110. The figure shows a drop of just £21 from May’s data.

This minor adjustment is in line with the seasonal trends of previous years. The seasonal trends highlight a stable housing market despite the political climate. However, the data also shows some regional differences in the housing market of the UK.

How Are Regional Differences Impacting the Housing Market?

The housing market is stable overall, but there are noticeable differences between regions. In the North of the UK, house prices are rising, while in the South, they are not performing as well. Interestingly, five out of six of the most affordable regions are experiencing increases in property values.

UK Housing Market

In contrast, the East of England and London have seen small decreases in prices. Despite these regional variations, the number of transactions and buyer inquiries has remained consistent across all areas.

How is the General Election Affecting Market Activity?

The housing market has been steady during previous election periods, and this trend continues with the current election. A recent poll of over 14,000 people shows that most respondents plan to proceed with their home-moving plans. However, there are fewer new sellers entering the market, especially at the higher end. These sellers are taking a wait-and-see approach, hoping for clearer signals after the election.

The announcement of the general election date has led to an increase in buyer activity. This increase in buyer confidence is expected to sustain higher levels of interest through June.

What Could Influence Future Market Trends?

Going forward, housing policies proposed in party manifestos could significantly impact the market. Bannister suggests that while some proposals show positive intentions, providing more comprehensive support for first-time buyers and other groups would be beneficial. Additionally, if the Bank of England’s base rate is reduced, mortgage rates could decrease, giving a quick boost to mover confidence and market activity.

A CEO and other industry experts are optimistic about the housing market's stability. Despite challenges such as high inflation and elevated interest rates, there are signs of growing confidence in the market. Some predict that if the Bank of England reduces the base rate, this could lead to a wave of competitive mortgage deals, further stimulating the market.

Conclusion

Despite the backdrop of political uncertainties, the UK housing market is displaying notable strength. There is steady market activity, increased buyer interest, and potential positive policy impacts on the horizon. As the election approaches, the market continues to stay stable.

Prerana
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