UK property market to stabilise further on election result

UK property market to stabilise further on election result

If there was one word that was spoken about the UK's property market more than any other in the lead up to last week's general election, it was 'uncertainty'. However, with the electorate returning a Conservative majority - much to the surprise of everyone - experts predict this is about to be turned on its head, with far more certainty about to define the property market. 

For the rest of 2015, many are saying, the fact we now have a settled government with a majority, as well as the fact Labour's feared mansion tax is no longer a threat, will mean the market will start to rise and ultimately stabilise in the months ahead. 

It will come as no surprise to anyone that Central London, and particularly the prime market, will be seeing the best improvements in the next few months. There were worries that the mansion tax would mean home sales around the £2 million mark failing to materialise, but without this to worry about, buyers and sellers are likely to be coming out in force across the next few weeks and months. 

Edward Heaton, of Heaton and Partners property search agency, said that the price of prime properties both in London and further afield could climb by as much as ten per cent in the rest of 2015, as buyers who were waiting to see what would happen in the election start to return to the market with a renewed confidence. 

"There will be bun fights in the next few weeks for the best houses which come to the market as confidence in the top-end of the regional market returns," he said of the future of the property sector.

"For many operating in the prime property market, there is a palpable sense of relief at the election outcome as there were some genuine concerns about the possible impact of mansion tax tied in with the attack on non-doms proposed by Labour," Mr Heaton added. 

Michelle van Vuuren, managing director of residential development at Sotheby’s International Realty UK, said that the fact the uncertainty about the market has now died down will mean that there are more possibilities for buyers, investors and developers to put plans in place for their future operations.