Brokers believe Tory majority will boost housing market

Michael Lloyd

December 13, 2019

 

Brokers were pleased with the news that the Conservative Party won a majority in yesterday’s General Election, believing it will give the housing market a boost.

The party, led by Prime Minister Boris Johnson, has its biggest majority in Parliament since 1987.

Meanwhile the Labour Party, with Jeremy Corbyn at the helm, delivered its worst election result since 1935.

Brokers agreed that yesterday’s result will give the housing market a boost by delivering more certainty.

David Hollingworth, associate director of communications at L&C Mortgages, said: “The election result removes a layer of uncertainty for existing and aspiring homeowners who will now be looking ahead to what this may bring in terms of Brexit and the wider housing market.

“Whilst there’s still likely to be a good degree of uncertainty any clarity that emerges may help make the mind up for those that have been waiting to see how things pan out.

“Even if there is a boost to consumer confidence that is still more likely to take time to feed through and a Budget will help to give more certainty on issues such as potential cuts to stamp duty.

“The Conservatives also suggested that the use of long-term fixed rates could help to improve the options for borrowers, particularly first-time buyers, so it will be interesting to see what action we see from here.”

Andrew Montlake, managing director of Coreco, added: “This decisive General Election result could deliver a massive adrenaline shot into the UK property market.

“Expect a sharp uplift in transaction levels starting early in 2020, as buyers and sellers who have played it safe put their plans into motion.

“Spring for the property market could come early after this comprehensive Election victory.

“There is a huge amount of pent-up demand out there that looks set to be unleashed on the market next year.

“Although a lot of the hard work around Brexit has yet to be done, there is now a political stability that will give a lot of people the confidence to get on with their lives.

“The fact that borrowing costs are ultra-low gives people even more reason to buy and sell.

“Not so long ago, Brexit looked like bad news for bricks and mortar, but people will now be relieved it can finally be put to bed.

“With so much red turning blue, the property market could be at the beginning of a long Brexit bull run.”

Martin Stewart, director of The Money Group, said the result will bring a degree of stability to the wider economy but whether that lasts longer than the government itself remains to be seen.

He said: “As Churchill himself would say, this is only the end of the beginning.

“What the electorate will now want to see is the delivery on the pledges which will mean there is no wriggle room for the Conservatives – shape up or ship out will be the mantra.”

Adrian Knott, broker and owner of AK Partnership, added: “Now we have a majority we can move forward as a country.

“The housing market will get the confidence it has been missing and move on from the stagnant position it’s in now.”

Michael Lawlor, business principal of Mortgage Advice Bureau in Finchley, said: “I think we’ll see a house price increase next year.

“It’s all about confidence. Say what you want about Johnson, but he’ll be good with businesses and confidence.”

David Westgate, group chief executive at Andrews Property Group, said that the property market will be one of the main benefices of the Election result.

He added: “Such a conclusive victory for Boris Johnson has the potential to turbocharge the property market and get it out of its current rut.

“The certainty that comes with a 5-year administration will create confidence and bring back the aspirational buyers and sellers that have been lacking since the EU Referendum result.

“For three years the property market has been gripped by political uncertainty and deadlock but now it can finally move on.

“There’s every chance we are now at the beginning of a market cycle that may not peak until 2027 or beyond, with growth of around 4% a year.

“Let’s not kid ourselves that the housing crisis will be miraculously solved overnight, because it won’t.

“We now need a Housing Minister with a properly costed and fully structured long-term plan that looks beyond building a certain number of homes each year.

“The structural issues in the property market will still be there when the euphoria of the Conservatives has faded.”

John Phillips, national operations director at Just Mortgages, said that the result has given more certainty to people thinking about buying and selling homes, and to investors.

He said: “The government has a majority now not just to ‘get Brexit done’, as we’ve been hearing during the election, but to get on with some of the other issues that have been holding the country back.”


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