Horton And Garton Comment On the General Election

John Horton and Paul Cooney discuss how they think the election will affect the property market

Paul Cooney:

"I am relieved that the Prime Minister has called a General Election because the outcome will hopefully provide stability to the UK property market. It's been a whirlwind since the Brexit vote - a lot of sellers and buyers have been holding their collective breath, waiting and watching until the market stabilised. Every person I've spoken to in the past month, buyers and vendors alike, have been asking the same question; instead of where are we now it's where is the market heading. Everyone has been waiting for a sense of stability. Once the election has taken place we will have a stronger government installed that will be better equipped to cope with the lengthy and arduous process of Brexit. This will have an immediate knock on effect providing a boost in confidence when buying and investing. Potential buyers who have been on the fence will begin active searches with newly confident sellers listing their properties.

"I've met many families looking to upsize but hesitant to buy. They've been considering extending their current properties or renting a larger property, wavering in this softer market, but my advice is to meet with a knowledgable local mortgage advisor as rates are at record lows. If you looked at securing a mortgage in January, for example, look again as many rates have fallen. Our team speaks to brokers on a daily basis and the latest product data analysis shows that we are moving towards a period of cost and rate stability or even potential rises. In short, now is a brilliant time to snap up an incredibly low rate.

"Banks are developing interesting schemes tailor made to appeal to universally acknowledged "bank of mum and dad." Barclays Family Springboard mortgage plan is of note where a family member adds to a savings account which is then used as a deposit for a property worth up to £500k. Their savings continue to gather interest and are returned after three years with interest so you can still provide the bank of mum and dad without having to empty your coffers!"

Phil Coombes:

"Theresa May's slim working majority of 17, trouble in Scotland and dissent in the House of Lords hasn't projected a firm grasp on Parliament. If the opinion polls are correct, she will win a larger majority - a clear signal from the country that they have confidence in her to see us through Brexit, possibly the biggest political manoeuvre since World War II. Economic stability is key to a flourishing property market. When newspapers run negative front page headlines we can see the lack of confidence reflected in the numbers of enquiries we receive. The knock on effect is immediate. Once the election result is in, renewed confidence in the government will see the market become buoyant. With ‘International Trade’ Secretary of State Liam Fox leading trade envoys around the world to reassure foreign investors, the pound should strengthen and foreign investment should be renewed. Demand for properties will increase with lots of buyers currently on the fence deciding to take the plunge."

May 2, 2017