Interesting times ahead
There is only one topic of conversation at the moment….
The election result
Well, wow the results are in and we have a new government, the most widely predicted result of recent elections.
For those working within the property sector and for anyone selling or buying, the crucial issue is how will this affect the UK property market?
Of course, any new government’s policies can also influence the property market. We could see measures to increase housing supply (which could put downward pressure on prices) or help first-time buyers get onto the property ladder (which could boost demand).
So, what do we know so far Angela Rayner takes the position of Secretary of State for Levelling Up, Housing and Communities as well as Deputy Prime Minister, Matthew Pennycook is Minister of State at the Department for Levelling Up, Housing and Communities.
New chancellor Rachel Reeves is likely to be focused on economic growth and outlined the urgent action to fix the planning system and steps to build the infrastructure needed. Her background interestingly includes having worked at Bank of England and HBOS, she was educated at New College, Oxford and the LSE and a chess champion at the age of fourteen.
Having reviewed some of the key points within their manifesto, the new Government wants to build 1.5 million homes over the next five years and a new generation of new towns. The National Planning Policy Framework will be reformed with a consultation on a new growth-focused approach to the planning system before the end of the month, including restoring mandatory housing targets and the UK Government will create a new taskforce to accelerate stalled housing sites across the country.
Labour also wants to drive economic stability by keeping mortgage rates as low as possible, building capacity within HMRC boosting their powers, and replacing the business rates tax system. It is also expected that they will review Universal Credit, increase the number of socially rented homes and support first-time buyers by introducing a permanent, comprehensive mortgage guarantee scheme.
Regulation of the private rented sector will be a focus and likely to be overhauled, improving building safety, and more protections for leaseholders. The Warm Homes Plan will create grants and loans for energy efficiency improvements in people’s homes.
Certainly, affordability remains the biggest barrier for first-time buyers. The higher interest rates of recent years have introduced a new normal in terms of mortgage rates. Clearly the new Government must be careful not to risk the downward trend of inflation which, if maintained, will eventually lead to a drop in rates and subsequently a boost to the housing market.
At the time of writing this piece, we await the King’s Speech which will be on July 17th to see what the focus will be on.
It remains to be seen how this will affect the local Norfolk property market, but hopefully on my next article I will be able to give you a clearer picture of how the first few months will have gone.
If you would like to discuss any elements of this article or have questions relating to a property that you would like help with, whether you are buying or selling then please do not hesitate to contact us on 01603 432000 or email me on paul@mortonreeves.co.uk
Find out more about us at https://www.mortonreeves.co.uk/ on which we even have an online property valuation tool that will give you an approximate indication in 20 seconds for your home.
We also have several online video tips and guides for various aspects of selling or buying a property which have proved useful to the first-time buyer or indeed the seasoned buyer or seller.
Paul Sullivan MNAEA
Director
For Morton Reeves
