After an election that at best could be described as chaotic, at worst shambolic, we are inevitably bracing ourselves for a period of uncertainty while the situation of having a hung parliament is resolved.
The question is how will this affect the property market? Well, it may be just too early to say for sure but the good news is things were looking relatively strong as we went into the general election and house prices in England and Wales have hit a record high during May despite the uncertainty surrounding the election.
The average property price increased to £303,200 in May with brings the average increase across England and Wales to 4.8%.
That equates to £13,984, which is up from the previous month’s 3.5% according to the House Price Index from Your Move.
Your Move stated that house prices increased by 0.3% month on month leading into May as the housing market remains strong, despite the challenging environment.
While property sales in London and the South East were slower where sales were down by up to 19%, the report by Your Move stated an estimated 62,500 homes changed hands, which meant the overall market performed well, thanks to exceptional performance in the North of England.
Sales in North East increased by 10% with 7% being recorded in the Yorkshire.
During the build-up to the election we witnessed a lot of talk about housing from the main political parties so it’s now time for those words to be put into action. Naturally a hung parliament may potentially have a negative impact on the housing market if it is not resolved quickly and efficiently.
Both Labour and Conservative parties polices on housing could benefit the market, however a hung parliament may mean they can’t deliver productively, causing more issues for those looking to get on the ladder.
The good news for property investors is despite the anticipated setbacks that events such as Brexit and the General Election may cause, once again, property proves that when supply and demand is in your favour, the arrow tends to go one way.
