"The election result doesn’t seem to have been a floodgate moment in this respect and while many agents believe the result to be a positive one, it’s likely to be a cut to interest rates that really revitalises the market"
- Colby Short - GetAgent
Estate agent comparison site, GetAgent.co.uk has revealed that whilst Labour may have won the election in a landslide, estate agents remain divided on whether the result of the recent election will be positive for the housing market.
The survey of almost 1,000 UK estate agents, commissioned by GetAgent, found that: -
A marginal majority of 56% believe that the recent election result will be positive for the wider housing market.
The election was widely predicted to have little impact on overall market sentiment or activity, and it seems as though this has largely been the case, as agents are yet to notice any notable post-election bounce, with just one in five (19%) stating that there’s been an increase in market activity since the election itself.
It remains early days and agents are more optimistic when it comes to their longer term view, with 63% of those surveyed by GetAgent anticipating an uplift in market activity over the coming months.
However, with interest rates yet to fall and higher mortgage rates continuing to stifle buyer purchasing power, just 42% believe that this increase in market activity will help to cultivate a higher rate of house price growth.
When asked which of Labour’s proposed housing market initiatives they believed would be most influential in shaping the housing market going forward, giving first-time buyers the ability to buy new homes before investors ranked top.
The reform of the planning system and the target of 1.5 million new homes also ranked high, as did leasehold reforms making it more transparent and affordable for leasehold homebuyers.
Co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “Recent mortgage approval and house price data all very much point to a housing market that is on the up, but one that continues to be somewhat stifled when it comes to the level of market activity and the rate growth being seen.
"The election result doesn’t seem to have been a floodgate moment in this respect and while many agents believe the result to be a positive one, it’s likely to be a cut to interest rates that really revitalises the market.
"The good news is that this seems very much on the horizon and preparation is key when it comes to setting the foundations required to capitalise on such a surge in market activity, both with respect to the available stock on an agents books and the suitable resources in place to cope with the increase in workload.”
