Posted on 8th June 2024
After saying for months that the election wouldn’t be until the autumn, the Prime Minister announced the general election would be held on 4th July, ending months of speculation.
So what do this mean for the housing market?
The Sales Market
Recent reports show there’s now more properties for sale than there has been for the past 8 years. The general election and the stubbornness in mortgage rates staying the same (or in some cases increasing slightly) will be affecting confidence. Buyers may just wait until the dust settles after the election, which will hopefully tie in with interest rates (and then, hopefully, mortgage rates) coming down over the next few months.
The Lettings Market
We’re still seeing huge demand but a lack of rental properties. A familiar pattern over the last few years. We’d urge landlords thinking of quitting the market to re-consider. Rents are at record highs and you’ll most likely get your choice of multiple tenants.
Leasehold Reform Act
Just squeezed through on the last day of parliament, the Leasehold Reform Act will now become law meaning any new build houses (unless in exceptional circumstances) will automatically be freehold. The same doesn’t apply for flats, though, and caps in ground rent that were discussed did not make the cut. The Labour Party may re-visit this if they come to power, as expected.
Renters Reform Act
The government’s flagship housing policy over the last 5 years is now dead in the water, having failed to pass through the final stages of parliament. The major part of the bill - the abolition on Section 21 notices - would have been delayed indefinitely anyway due to a lack of resources in the courts. The Labour Party is also in favour of abolishing Section 21 notices but, if they win the election, will have to start again and who knows how long that will all take.