How the general election announcement affects the property market
Prime Minister Theresa May’s announcement of a general election in June could slow down the housing market, experts have predicted.
Quoted by The Sun in April 2017, Andrew McPhillips of the Yorkshire Building Society said:
“The housing market is going through a sluggish period at present and a general election adds to the chances of it lasting longer.”
Estate agent Jeremy Leaf added:
“Inevitably, a lot of decision-making will be put on hold, particularly as the polls fluctuate, and that includes the decision to buy and sell property.”
Analysis of the housing market during recent general elections has revealed that there tends to be a slowdown in the run-up to the general election, but the market picks up within three months after election day.
Russell Quirk CEO of Emoov advised that if you want to buy or sell a house, there is no point in delaying the decision because the housing market is slow. The time between the election announcement and the election date is not long, so the market should recover quickly.
Buyers reliant on the sale of an existing house to finance the purchase of a new one could find that there will be less interest from buyers until after the election. If they need to quickly complete the purchase of a new home, a bridging loan can be used to raise finance. An open bridging loan has no fixed repayment date. Once the market picks up post-election, a buyer should be found for their existing house and the loan repaid.