How will the UK's snap general election affect the property market?

 
How will the UK's snap general election affect the property market? [Photo: fazon1 via iStock]

In a surprise move earlier this week, prime minister Theresa May announced that the UK will be heading to the polls in early June, with the electorate facing a snap general election less than a year after Mrs May came to power. 

The announcement came as a shock to many sectors in the UK, with experts now scrambling to work out what the uncertainty and confusion will mean for them in the months ahead. The property market is no stranger to this sort of political upheaval, but is nonetheless still one of the sectors most likely to need to keep an eye on proceedings in Westminster. 

So, with just a few weeks to go until Brits head out to cast their votes, we ask: what will be the biggest factors to take into account, and what does the snap election mean for the UK's property market? 

Short timescale

One of the most beneficial elements of this election announcement for the UK is the fact that it comes in such a short timescale.

Previously, uncertainty has been hailed as the reason for price stalls and drops, but with only a few weeks’ notice, the market will barely have time to brace itself, and there shouldn't really be the time for worry and uncertainty to settle in and have any effect on the market as a whole.

Probable outcomes

One of the biggest factors in this projected lack of uncertainty is that the outcome of the election seems to be in little doubt. While previously it has been hard to predict with any certainty who would win the public vote, this time around it seems a little more obvious. 

The vast majority of experts are forecasting a Conservative landslide in the election, with the party expected to even eat into the number of seats Labour has in the current parliament. 

This certainty can only be good news for the market, particularly with the likelihood that it will bring about the opportunity for the Conservatives to continue the work they have already started on the housing market with the white paper released earlier this year. 

Market intentions

The good news is that the election announcement this week seems to have had little, if any, negative impact on the sentiment of those operating in the UK's property market. 

According to a survey released by eMoov, some 56.7 per cent of sellers in the market said they will have no qualms about continuing with their plans to bring their home to market and buy another property. This was compared to just 18 per cent who said they would put the process on hold until they see what happens.