It might have been expected that the political uncertainty and insecurity that Britain faced in the previous month would slow down rising house prices, as people looked to wait to move after political constancy was once again established. Yet, this does not appear to have been the case. During the election month average house prices rose across Scotland, Wales and all English regions according to information from home.co.uk.
The South East of England leads the price growth, increasing 1.3% since April, rising higher than the 0.8% average price rise which was experienced across England and Wales. Even in the typically slower growing regions such as the North East and North West, prices have risen 0.6% since April.
Any growth during such a period of uncertainty over future housing legislation and policies would appear to reflect a growing confidence in the property market.
It is likely that Conservative schemes such as the new Help to Buy Isa and extension of the right to buy is likely to give more people a voice in the housing market. This combined with the now extinguished fears over the mansion tax and non-domicile legislation following the Labours party’s unsuccessful bid, means it is likely prices, and hopefully transaction levels, will remain on the up.
However, the growth can also be attributed to housing supply failing to meet demands. It seems the supply of new homes entering the market can’t keep up with the rising demands for home ownership. The new majority government may wish to investigate this issue, especially given their pre-election promise to build 200,000 cut price homes for first-time buyers.
