Election Result Reactions
Sat 09 May 2015
How is the General Election result expected affect the property market in particular conveyancing?
We get the reaction from industry experts who have released their predictions on whats to come.
Eddie Goldsmith, Chairman of the Conveyancing Association, comments:
"The Conveyancing Association has welcomed the strong focus on housing issues throughout the electioncampaign and the recognition from all parties of the importance of this issue. Whilst the prospect of an uncertainresult did seem to cause a slowdown in the housing market, the result today suggests that people will have moreconfidence to move home.
"The priority for the new Government must now be to continue to foster stability in the housing market, as theeconomy continues to recover. We welcomed the previous Governments policies of promoting home ownershipthrough schemes such as Help to Buy and the changes to the Stamp Duty system, which were positive reforms.
We would now like to see the Government keep its pledges to substantially increase the supply of new homestoo.
"While the economic situation continues to improve steadily, with falling prices and rising wages, it also remainscritical that the Bank of England continues to take a cautious approach to interest rates. While we expect them torise in this parliament, the CA would like to see gradual increases over a period of time thereby enabling peopleto adjust to the new landscape and manage their finances accordingly."
Harpal Singh, Managing Director at Broker Conveyancing, comments:
"The last thing the current, rather delicate, housing market or the wider UK economy needed was any whiff ofuncertainty or implementation of radical changes. Therefore the fact that the Conservativeshave won a smallmajority means that I believe, regardless of political persuasion, those businesses who are in anyway linked tothe property sector should probably breathe at least a small sigh of relief.
"What we need now is to develop the UK housing market, in particular, increasing housing supply for both ownership and rental which should be the number one priority for this new Conservative Government. The timereally has come to deliver in this area and lets hope we see real progress over the course of the next five years."
Mark Hayward, Managing Director of the National Association of Estate Agents comments :
"A majority government is good news for the housing market. With the Conservatives having secured a slendermajority, were looking forward to seeing policies theyve pledged such as their first time buyer (FTB) new-buildcommitment and their Help to Buy promises come through.
"During their election campaign, the Tories outlined a seven point plan, pledging amongst other policies, to tacklethe growing supply and demand issue in the country for FTBs. The Help to Buy ISA, brought about during theBudget will now be pushed forward, meaning that for every 200 saved for a first house, the Government will topup with 50 more. Effectively a tax cut for FTBs, this, along with their pledge to build 200,000 quality starter homes with a 20% market rate discount for buyers under the age of 40, will help the housing market to level out and help FTBs get on the first rung of the ladder. Right to Buy for housing association tenants will also now beextended, giving an extra 1.3 million families the right to buy their home. Again, this will help supply and demandto level out.
"Our concerns with a majority Conservative government is whether they are going to be able to cash the cheque of promises theyve made for home ownership within just five years. Supply and demand is a huge issue plaguing our country, and without tackling issues over planning, infrastructure and skills capacity, we worry that they will be unable to meet the growing demand of FTBs and fulfil their promises."
Peter Rollings, CEO of Marsh & Parsons, comments:
"The most positive aspect of a conclusive election result is that the uncertainty that has surrounded the economy and the property market can now be banished and the recovery can continue. A hung parliament may haveprolonged this purgatory, so a majority vote means that buyers, sellers and the property industry as a whole canagain plan for the future with confidence.
"The top-end market will be breathing a huge sigh of relief that 2m+ properties wont be penalised by a mansiontax, a levy that would have stifled activity in the capital and across the South East. Any such tax could also havehad implications on lower rungs of the property ladder too, so it is not just wealthier homeowners who should becounting their blessings. The post-election feel-good factor could kick in immediately and 2015 may prove to be a
reversed version of 2014 in starting slowly and finishing strongly."