The General Election – What does it mean for the property market?
The upcoming general election is full of politicians promising the earth – but what would happen if they actually get in?
We’ve ploughed through the pledges and the vague hints, and worked out exactly what you’re voting for when it comes to property this May.
Labour – Mansion Tax and Rent Controls
The party with the most potential shake ups in the property sector is Labour. Not only are they proposing the controversial Mansion Tax, but they’re determined to make more housing available for people to buy – and they want to make it affordable.
They’ve promised to build 200,000 new homes a year by 2020 – just 5 years away. This will help to bring the prices of houses down to levels people can actually afford – which will mean more sales and more commissions for estate agents.
Empty buildings will find themselves charged higher rates of council tax and new builds will have to be offered to UK buyers first – to prevent foreign ‘buy-to-leave’ investors buying properties, driving up the prices and leaving them empty.
They are also planning on changing the rental market. As so many people are locked out of buying due to the high house prices, Labour is determined to get renters a fair deal. They’d like to introduce 3 year tenancies, rent caps and abolish letting agent fees for tenants. This is likely to slow down the rental market with fewer properties available to rent. Landlords may be discouraged to purchase more buy-to-lets – which could influence house prices.
Lib Dems - building more houses
The Liberal Democrats have a similar approach to Labour, also favouring a version of the Mansion Tax and building far more houses – their target is 300,000. They’d like to increase levels of social housing and create Garden Cities in Cambridgeshire, Bedfordshire, Buckinghamshire and Oxfordshire. This will have similar implications for estate agents as Labour – more houses mean more commissions and more social housing being built means less strain on the private rental market from DSS tenants.
Conservatives – Discounts for First Time Buyers
The Conservatives have a different approach to housing. They have promised that up to 100,000 new starter homes will be available with a 20% discount to first time buyers under 40, and are opposed to the mansion tax. This will not do a great deal to change the property market as it stands, so their impact on estate agents will be minimal. They are planning on keeping the Thatcher-introduced Right To Buy – which will keep the number of council owned properties declining, and mean more DSS tenants looking for rental homes.
Other parties have other concerns – SNP, Plaid Cymru and UKIP all oppose the ‘bedroom tax’. The Greens are keen to increase the amount of homes the Council own, by abolishing Right To Buy, giving councils the right to build houses or rent them on the open market and enabling home owners who are unable to make their mortgage payments to sell their house to the council and rent it back as a council tenant.
Until the election the housing market will slow down thanks to the uncertainty – and only time will tell what comes next!
