"Since the election result was announced, enquiries to estate agents increased by 19% compared to the same period in 2023, with activity expected to increase further now the summer break is over and the Autumn rush ensues."
- Rayna Hunter - LH1 Global
Historically, elections and major economic events have notable implications for the property market, both positive and negative depending on the situation. On average, the UK has recorded property value spikes of between 4-7% following an election, with market confidence often increased due to new policy promises.
On the other side of the coin, negative economic events, such as national/global recessions, inflation and interest rate rises can significantly hamper market confidence resulting in a significant reduction in activity and a sharp decrease in property values.
In recent years, the UK has found itself skirting on the edge of a recession, fuelled by rising inflation, increased interest rates and an unstable political landscape that has been rocked by the implications of leaving the EU. This has had an impact on the property market and created caution and uncertainty among international property investors who have begun to waver on the long-term view of the country as a safe and stable destination for their capital.
However, the overall impact hasn’t been as significant as some initially predicted, with property prices increasing by 2.7% in the 12-month period from June 2023. This is a testament to the enduring appeal of the UK as a safe investment destination and the robustness of its property market and coupled with a new majority government and interest rates beginning to come down, the green shoots of hope are growing taller.
Since the election result was announced, enquiries to estate agents increased by 19% compared to the same period in 2023, with activity expected to increase further now the summer break is over and the Autumn rush ensues.
Looking ahead to the final quarter, with the new Government’s first budget due in the Autumn Statement, the true impact on the wider economy and property market is still to be determined. However, the initial positivity is welcome, and this has already seen many experts alter their property market performance predictions from the start of the year.
Savills, for example, improved their outlook of a modest 1.1% rise in values to 2.5%, whilst Knight Frank has altered a prediction of a 4% decline to a 3% increase in property prices following the recent election.
Whatever the future holds, now is the time for property firms, like ours, to take the initiative ride the momentum and showcase just how much pull UK property has for purchasers from around the world due to the returns still on offer and the general stability and security that will always be a staple of this country.
