Election result provides stability to UK housing market

Election result provides stability to UK housing market

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New data revealed on Monday that UK house prices have grown at a record rate following last month’s general election.

Rightmove’s House Price Index revealed that the price of property coming to market increased by 2.3%, making it the “largest monthly rise” ever seen at this time of the year.

Between 8 December and 11 January, almost 65,000 properties were marketed.

Meanwhile, buyers are also feeling the optimism as demand has jumped since the election. Immediately after the election from 13 December to 15 January, enquiries to estate agents were up by 15% compared to the same period a year prior.

Last year was a rather turbulent one for UK politics, with political and economic uncertainty hitting many sectors.

It seems that the outcome of December’s general election has provided optimism to the housing market.

“These statistics seem to indicate that many buyers and sellers feel that the election result gives a window of stability,” Miles Shipside, Rightmove director and housing market analyst, provided a comment.

“The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home-movers to hesitate,” Miles Shipside continued.

“There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market. The early birds are on it, with over 1.3 million buyer enquiries to agents since the election, up 15% on the same period a year ago. Some buyers are even further ahead and have snapped up a property already, with the number of sales agreed up by 7.4% on this time last year.”

Marc von Grundherr, Director of Benham and Reeves, said: “The coal that fills the furnace of the UK property market is very much market sentiment and it doesn’t matter what your stance is on Boris or the election result, even the slightest inkling of returning market stability has been enough to reignite the fires both where buyer and seller activity are concerned.”

“There was an instant uplift in buyer commitment following the result and those acting fast enough were able to secure some very favourable deals. However, as is always the case, a tsunami of buyer demand soon spurred an increase in asking prices and savvy sellers were quick to ride the turning tide to ensure they secured the best price for their property,” Marc von Grundherr said.

Marc von Grundherr added: “This rather emphatic return to form was always on the cards given the resilience of the market and we shouldn’t be surprised if this is only the start of a very positive new decade for the UK property sector.”

Meanwhile the Founder and CEO of GetAgent.co.uk, Colby Short, also provided a comment: “The property market has sat in a state of hibernation while political uncertainty has remained prevalent, but all the while, both buyer and seller sentiment has been building like a coiled spring.”

“The election has proven to be the release point for this built-up tension, with the market exploding back to life almost instantly and both buyers and sellers jumping back in at the deep end where enquiries and asking price increases are concerned,” Colby Short said.

Colby Short added: “This has helped to bump start a market that has been stuttering over the last three and a half years and while we shouldn’t try and run before we can walk, it does show promise for the year ahead.”