Industry insights
UK Housing Market Trends During General Election 2024.
The UK housing market, a pivotal segment of the nation’s economy, is susceptible to the ebbs and flows of its political landscape. As the UK General Election 2024 looms (in case you’ve been living under a stone, it’s on July 4th 2024), stakeholders within the housing domain—ranging from potential buyers to investors—are keenly observing the possible impacts on house prices, market stability, and the broader economic repercussions.
Here at Parkgate Estate Agents, we know elections are prone to ushering in a period of uncertainty within the market, causing fluctuations in buyer and seller behaviours and impacting the overall momentum of the housing sector. Understanding these dynamics is critical and savvy for those navigating the UK property market during these pivotal times.
Historical Trends in Housing Prices During Elections
Historically, UK housing prices have shown resilience around election times. Data from Rightmove indicates that buyer demand has often increased in the months leading up to elections, with notable spikes in demand observed immediately following the election results. For instance, the 2015 General Election saw a 9% year-on-year increase in buyer demand during the election month, which further surged by 18% in the following month. Similarly, the 2019 election maintained stable demand pre-election, with a subsequent 14% rise post-election, underscoring a pattern of robust market activity during these periods.
Recent Market Activity
Recent trends suggest that the impact of elections on the housing market might be less pronounced than in previous years. Despite the general uncertainty elections bring, a significant majority of buyers, 95%, according to Rightmove, do not alter their purchasing plans. This sentiment is reinforced by the minimal policy differences between the major parties concerning housing. Additionally, the market has demonstrated a capacity to recover quickly post-election, supported by factors like interest rate cuts and inflation trends, which maintain buyer interest and market stability.
Current Sentiments and Market Confidence
Buyers and sellers in the UK housing market are navigating a landscape marked by a slight decline in house price inflation, currently at -0.1%. This stability, attributed to an increased housing supply, has fostered a relatively stable pricing environment, encouraging buyers to approach the market without haste. Sellers, benefiting from a 13% year-on-year increase in sales activity, remain optimistic. The market’s responsiveness is further evidenced by the adjustment of asking prices, with about 31% of homes reducing prices to attract buyers, underscoring the importance of realistic pricing strategies.
Predictions for Buyer and Seller Activity
Looking ahead, the expected continuation of stable house price inflation suggests a market conducive to thoughtful purchasing decisions. With more homes available, buyers possess greater negotiating power, and the choice-rich environment supports a healthy market dynamic. To capitalise on these conditions, sellers should focus on property enhancements and competitive pricing. The anticipation of lower interest rates could further buoy market confidence, potentially easing mortgage rates and fostering a more active housing market as we progress through 2024.
Market Outlook Post-Election
Post-election, the housing market is expected to regain its momentum. Due to their affluent status, areas like Richmond and Putney may see less impact from election-induced hesitations, maintaining robust buying and selling activities. Nationwide, while a temporary slowdown in new sales agreements might occur as the election approaches, the market is poised for a quick recovery, reflecting resilience in buyer sentiments and continued demand. This could lead to a more robust market in the latter half of the year, especially if interest rates decrease, enhancing overall affordability.
Conclusion
Throughout the analysis of the UK housing market trends in the shadow of the General Election 2024, it has become evident that while political events introduce a period of uncertainty, the market’s resilience and the public’s ability to adapt are remarkable. The apprehension associated with the elections temporarily influences buyer and seller behaviours, compelling a cautious approach to spending and investment. However, as history and current trends suggest, this hesitance is short-lived.
Once the political dust settles and direction is established, the UK housing market is poised to navigate through the election-induced uncertainties with a degree of steadiness, buoyed by the underlying strength of demand and the capacity for quick recovery post-election. This is particularly relevant in high-income regions such as Richmond and Putney, where the economic capacity to withstand short-term hesitations ensures the continued momentum of buying and selling activities.
If you want to buy, invest or sell a property in Richmond, Putney, Twickenham, Mortlake or Sheen, contact our award-winning team today, who have the expertise to help navigate you easily through the current market. Contact Us.
