What the Election Result Means for the Property Market in South Ockendon
After weeks of intense campaigning, the general election is over, resulting in a landslide victory for Labour. Whether you're excited or indifferent, the election's conclusion brings much-needed stability. Historically, property markets improve post-election, and South Ockendon could see a market bounce soon.
After weeks of campaigning, the general election is done. The worst-kept secret of 2024 is out: we have a new Labour government in the UK, with the party winning by a landslide.
Whether you’re pleased, disappointed, or indifferent, the end of the election campaign is generally good news for the property market. Property markets thrive on stability, and now, with a clearer picture of the government’s direction for the next five years, we can expect the market to react positively.
Historically, property markets tend to pick up after elections, regardless of the result. This could mean that, once the summer holidays are over, we might see a bounce in the market here in South Ockendon.
Mortgage Rates: What’s Next?
The key issue for many will be mortgage rates. Most experts have been predicting a fall in the Bank of England’s (BoE) base interest rate this year. The impending election likely influenced the BoE’s recent decision to hold rates steady, but now that it’s behind us, we could see a decrease as soon as their next meeting on 1 August.
According to The Times Money Mentor, forecasts suggest the interest rate could drop from 5.25% to 4.5% by the end of the year, with Capital Economics predicting a further decline to 4% by the end of 2025. If mortgage rates follow suit, borrowing could become cheaper, potentially prompting more people to consider moving.
Labour’s Housing Proposals
Labour’s manifesto includes ambitious housing pledges: 1.5 million new homes, more affordable and social housing, and reforms to the planning system. They plan to build on ‘grey belt’ land and introduce new towns. While these measures could invigorate the property market, they will take time to implement and face significant challenges.
For renters and investors, Labour plans to reform the rental market, introducing more regulation for landlords and increased security for tenants. Details are still sparse, but changes are expected.
Additionally, Labour has pledged further reforms to the leasehold system in England and Wales, which could benefit those dealing with leasehold properties. However, this area is complex, so professional advice from a solicitor or conveyancer is recommended.
Impact on First-Time Buyers
First-time buyers are crucial to the property market’s health. Labour’s proposed Freedom to Buy mortgage guarantee scheme aims to help first-time buyers secure mortgages with just a 5% deposit. Unlike the existing Help to Buy schemes, this one will be permanent, potentially helping 80,000 young people buy homes over five years. Although this is a modest number, it is a positive step.
Labour has not promised any new Stamp Duty exemptions for first-time buyers, but existing exemptions will remain until next year.
Financial Outlook
The new government has committed not to raise income tax, National Insurance, or VAT, but other taxes like capital gains, inheritance, and council tax might still see changes. We will have to wait for the new Chancellor’s first budget for more details.
Should You Buy, Sell, or Move Home Now?
Is the new government good news for homebuyers and sellers? While we have more clarity now, it’s wise not to rely too heavily on political promises. Consider your own circumstances first: if you need to, want to, and can afford to move, make the decision that’s best for you.
As always, a good estate agent can provide invaluable advice. If you’re thinking of selling, they can offer insights on your home’s market value and help you find the right buyer. If you’re looking to buy, they can show you available properties within your budget.
Contact us today if you’re considering moving in South Ockendon now that the election results are in. As local property experts, we’re here to help you navigate the market and make informed decisions.
