What do the General Election results mean for the property market?

What do the General Election results mean for the property market?

Now that the General Election is over and the Conservative Party has won, what does it mean for the somewhat sluggish property market?

The property market as a whole has been going through uncertain times recently, with worries about Brexit and a potential change in government hampering both buyers and sellers. Whilst property in some areas has continued to sell, other areas have seen much slower times, with some properties taking a while to achieve their desired sales.

But now that the Conservatives have gained a firm win and we're unlikely to see any further major government changes in the next five years, it's looking hopeful that things may be on the up for the property sector. In fact, the property market is one of the big winners in terms of election pledges and promises, as the Conservative party made some positive plans to aid the housing market.

On a practical note, the Conservative majority will hopefully encourage both property buyers and sellers to stop deliberating about whether to stay or move and take the plunge and actually do it. Brexit is of course still to come, but at least there is now more certainty that it is happening and the UK can move forward and embrace it.

The Conservatives made several key housing market pledges in their manifesto that will have a positive impact on the property sector. Here's an insight into some of them and the positive benefits they could bring.

Long-term fixed rate mortgages

One of the pledges the Conservatives made was to introduce a new long-term fixed rate mortgage. The idea is that this will help support more first-time buyers to get onto the housing ladder, which would be a definite bonus in what has become a difficult step to take.

First-time buyers would be able to take advantage of a guaranteed mortgage rate, helping them to finance and budget their new home more easily. It will help protect home buyers from changes in interest rates and make mortgages more achievable for more people.

Stamp duty surcharge for foreign buyers

Another key factor in the Conservative manifesto was the idea of introducing a stamp duty surcharge for foreign buyers who purchase property in the UK. With this potential change looming, the property market could be boosted in the short-term by foreign buyers wanting to take advantage of purchasing property now, before the stamp duty surcharge comes into force.

Lifetime rental deposit

Renting a property can involve the need to pay a large deposit from the outset, which can sometimes be tricky for tenants who haven't yet got the deposit back from their old landlord.

In a bid to resolve this situation, the government are planning to introduce a lifetime rental deposit, which will automatically transfer their deposit to a new landlord without having to make an additional payment. This could significantly improve things for renters and make things easier for landlords.

It's likely to take some time before all of these pledges become reality, but with the pound already seeing beneficial boosts in response to the election results, the housing market could be the next to improve. Heading into 2020, it's time for the property market to shine again.