Property industry looks forward to clarity in upcoming general election

Property industry commentators are pleased we’re heading for a summer general election, given that it’s likely to give the industry clarity on the state of the market sooner than expected.

As it stands (23 May) Labour are 20 points ahead in the polls, despite the limited popularity of its leader Keir Starmer, so the Conservatives would need a strong turnaround to even secure enough votes for a hung parliament.

Rutu Buddhdev, founder of developer Amara Property, said:

“The announcement of a General Election in a little over 6 weeks’ time should be welcome news to all in the property industry.

“The clarity provided by the final result will remove the uncertainty that has been lingering ahead of yesterday’s confirmation.

“Combined with a continued reduction of inflation and, hopefully, in turn interest rates, this could be the tonic the property market needs to bring confidence back to buyers.

“Domestically we have seen purchasers restricted by high borrowing costs, whilst internationally investors have been perturbed by the political insecurity that has engulfed the country in recent years. It’s a positive step forward to a brighter future.”

Scott Joseph, director at estate agents Anderson Rose, is hoping for a Labour win in order to reinvigorate business.

He reckons the property market is likely to quicken up after the election takes place on the 4 July.

Joseph said:

“The six-week timeframe until the ballots open mean there won’t be much of an impact on sentiment or activity, instead we could see those that have been on the fence start to gear up for action come September.

“Labour are currently ahead in the polls and a Keir Starmer government may actually have a positive impact on the economy, as I imagine there will be a lot of immediate policies put in place to kickstart business and show that they can be a party for business.

“The worst outcome would be a hung parliament, that would just put us in an even more precarious position whilst the various parties manoeuvre and posture to create a coalition.

“Whilst the next six weeks will likely be more focused on completing the deals already in place, I predict we will start to see more people begin the groundwork of looking to sell their home or begin stepping up their search in the hope for sunnier uplands from the 5 July.”

Edward Heaton, founder of buying agency Heaton and Partners, compared Starmer’s Labour in positive terms to that of former Jeremy Corbyn.

Heaton said:

“This shotgun election means we now stand a chance of having a half decent Autumn market regardless of who is elected.

“It will be fascinating to see whether buyers are willing to commit to a purchase in the next couple of months and I suspect some of those that are could be rewarded with more favourable terms than they might otherwise have expected.

“For wealthy buyers, there is certainly nothing like the fear that we witnessed in the last election with the threat of a Corbyn government.

“I think the domestic audience is resigned to paying higher taxes probably regardless of the outcome of the election.

“We anticipate many international buyers will adopt a more cautious approach until the landscape becomes clearer.”

Simon McWhirter, deputy chief executive at UK Green Building Council, urged governments to focus on energy efficiency in the upcoming election.

McWhirter said:

“With the linked environmental, nature and cost of living crises; this is the most important election in a generation.

“Our buildings are the nexus of how we can solve many of these pressing challenges while delivering homes, offices and public buildings that are warmer, more comfortable, cheaper to run, and which tread lighter on the planet.

“This is the ‘built environment election’, and the UKGBC, with our members, have a raft of solutions that will allow a new government to deliver at pace and scale.”

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