London's housing market set to soar with post-election boost
05-11-2015
London's housing market is set to soar following the Conservative party's election victory, putting an end to months of pre-ballot jitters, say experts.
Image: PA
Property analysts predict an immediate price uplift with the conclusive poll result helping to restore market confidence among both buyers and sellers.
"We expect that would-be sellers who had adopted a ‘wait and see’ approach will now bring more stock to the market," says Lucian Cook, head of residential research at Savills UK.
The prime residential market in both London and the South East is also set to be boosted as the threat of Labour's proposed mansion is removed.
“The top-end market will be breathing a huge sigh of relief that £2 million-plus properties won’t be penalised by a mansion tax, a levy that would have stifled activity in the capital and across the South East. Any such tax could also have had implications on lower rungs of the property ladder too, so it is not just wealthier homeowners who should be counting their blessings," says estate agent Peter Rollings, CEO of Marsh & Parsons.
"We expect that would-be sellers who had adopted a ‘wait and see’ approach will now bring more stock to the market," says Lucian Cook, head of residential research at Savills UK.
The prime residential market in both London and the South East is also set to be boosted as the threat of Labour's proposed mansion is removed.
“The top-end market will be breathing a huge sigh of relief that £2 million-plus properties won’t be penalised by a mansion tax, a levy that would have stifled activity in the capital and across the South East. Any such tax could also have had implications on lower rungs of the property ladder too, so it is not just wealthier homeowners who should be counting their blessings," says estate agent Peter Rollings, CEO of Marsh & Parsons.
The new Conservative government says it is committed to building more new homes using brownfield land, and increasing the number of affordable homes for sale. Up to 200,000 new homes could be offered at a 20 per cent discount to first-time buyers aged under 40.
New Help-to-Buy ISAs are intended to help young buyers to save for a deposit via a 'bonus' scheme, where, for every £200 saved for a first house, the government adds a top-up of £50 more. The maximum amount the Government will contribute is £3,000, so a total of £12,000 would need to be saved.
The post-election feel-good stability factor is predicted to spread beyond the capital, with house prices tipped for significant growth in the South East region. "Improvements in the London market are likely to trigger a renewed ripple effect, as those relocating from London find it easier to sell their existing home and take advantage of the price differentials with the rest of the country," says Cook.
New Help-to-Buy ISAs are intended to help young buyers to save for a deposit via a 'bonus' scheme, where, for every £200 saved for a first house, the government adds a top-up of £50 more. The maximum amount the Government will contribute is £3,000, so a total of £12,000 would need to be saved.
The post-election feel-good stability factor is predicted to spread beyond the capital, with house prices tipped for significant growth in the South East region. "Improvements in the London market are likely to trigger a renewed ripple effect, as those relocating from London find it easier to sell their existing home and take advantage of the price differentials with the rest of the country," says Cook.
