UK property market breathes sigh of relief with Cameron government
The UK housing market has escaped an uncertain future with reelection of a conservative government. So much has been made recently of the reforms that Ed Milliband wanted to introduce to the detriment of the housing market that nearly all homeowners have been holding their breath.
According to David Cameron he wants to continue to help first time buyers and families to get onto the housing ladder. Wealthy Londoners can also forget about the Mansion Tax for another 5 years and this is likely to boost the London market that has seen prices drop over the last few months.
Buyers have not been coming forward because there were so many uncertainties particularly if the Labour Party were to get into power. It seemed to me that Ed Milliband could have wreaked havoc in the housing market but the unexpected result in the general election has put an end to all of this.
Estate agents in the Capital are already reporting that buyers have been registering in numbers today and there is also a rush to get sales exchanged in case the owners decide to put the price up. What a difference 24 hours can make.
Estate agents already reporting increase in buyers today
Agents are also reporting that overseas investors have been on the phone today and some properties that have been hanging around over the last six months have received multiple bids today. Nearly all of this money is coming from overseas as buyers flock back to the market. They are not worried about being taxed out of London and can forget about all of that for another 5 years.
Many of these buyers will not be looking much beyond 5 years time and now would seem like a good time to buy again. Londoners may as well forget about trying to buy a pad in London as it is now an international market and prices are far too high for local people.
Most of the impact on house prices will be focused in the prime parts of London where prices are expected to rise. However there will be a ripple effect on prices across the south-east of England. It would seem that the south-east has some catching up to do and perjhaps a kick start in ondon will help the south-east catch up.