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Will the election impact the housing market?

ended 31. May 2024

In this morning's Nationwide HPI, the mutual addressed whether the General Election will impact the housing market. The Nationwide said: "It appears that housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most homebuyers, elections are not foremost in their minds while buying or selling property.” Newspage asked experts if they have seen any impact from the General Election since it was announced last week. Their views are below.

10 responses from the Newspage community

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Andrew Montlake
Managing Director at Coreco
We have not seen any real ‘election effect’ and, for the most part, buyers are keen to continue or bring forward their plans to buy. Trying to either play the market or foresee what a new Government may or may not do is fraught with danger. A new Government could influence the market both positively or negatively, but I suspect that whichever party forms the next Government there will not be too much of a difference, certainly not immediately. Those that adopt a wait and see approach could end up paying more in stamp duty as an example or, if stamp duty is cut and there is a release of years of pent-up demand, end up paying higher property prices, especially in high demand areas.
I would always advise someone to buy when it is right for them, when they find the right property and it is affordable to do so. A home is a long-term commitment, not a short-term investment, a place to live in and create memories. Why risk losing out on the home of your dreams to 'see what happens'?
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Justin Moy
Managing Director at EHF Mortgages
The General Election and its accompanying fanfare hasn’t directly impacted the property market so far. Mortgage rates and stock levels drive the behaviours of the property market. But if any of the parties were to offer a stamp duty holiday or other financial benefit, that could stop the market in a heartbeat. Once the election process concludes, the financial markets will settle, giving us cheaper rates at the end of the summer. But until then, buyers will continue to look for property, as long as mortgage rates stop increasing.
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Riz Malik
Independent Financial Adviser at R3 Wealth
The reality is there is little a new administration can do in the short term that will have a positive impact on the housing market, other than a stamp duty incentive. I think people know that General Elections come and go but the property market does its own thing. However, those who have unsuccessfully tried to move in the past 24 months might think now is a good time to reassess their options given that change is almost certainly on the horizon.
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Michelle Lawson
Director at Lawson Financial
I have seen an uptick in enquiries since the General Election was announced. Just the prospect of change seems to have put a spring in people's steps. Mortgage rates, of course, remain high, and there are still a lot of questions as to when they will come down. That seems to be a far more important issue to buyers than the election.
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Chris Barry
Director at Thomas Legal
When we heard the surprise news of an early General Election, we expected demand to drop off but since the announcement last week, new enquiries have remained consistent. Demand remaining consistent can only come from a place of either confidence in the expected outcome or battle weariness given the sheer amount of big hitting news over the past few years. Throughout April and May demand was consistent with a spring market. This came as no surprise really given that last year saw surpressed demand following uncertain interest rates and the rising cost of living.
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Ken James
Director at Contractor Mortgage Services
Gloomy weather and uncertainty created by the sooner than expected election news seems to have slowed down the appetite from buyers.
Expectations of a base rate cut have also become more muted, this is filtering through to lenders, we may find ourselves suspended in Limbo for a period until the elections are completed.
Once we know the outcome of this election I am hopeful that the market will have a surge of new life, and the summer markets will be back to full steam.

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Ben Perks
Managing Director at Orchard Financial Advisers
The election campaigns are in full swing and Rishi has tried to save the sinking Tory ship by announcing lower interest rates if they retain government. Most borrowers are wise to the fact that this is a last ditch attempt to gain favour with the public and stop his own MPs from abandoning said sinking ship. Enquiries have remained consistent but buyers are still cautious. Much of the election white noise is having little impact so far.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
The only impact it has had is extending the already tiresome waiting game. April was filled with excitement and movement, but May has come to a bit of a standstill.
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Elliott Culley
Director at Switch Mortgage Finance
The news of the general election has not been on the agenda when speaking to clients. However the impact on the mortgage market is starting to be seen as rates have been creeping up and its likely we will see more increases until the next Bank of England meet up. Rate fluctuation is the main driver to borrowers and if there is an increase, demand is likely to wane.
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Robert Timm
Managing Director at Sunland Mortgages
I have seen no major changes to the current climate since the announcement of the General Election. Most people are waiting for an anticipated base rate cut before deciding to buy or move, and therefore the market, in my experience, is quieter than usual.