What effect will the snap election have on the housing market?
So the ‘snap’ election has been approved by Parliament. On the 8th June the UK voters will head to the ballot boxes to decide which party will lead the country out of the EU. As May announced her snap election on Wednesday 19th, the pound to dollar rate took a nose dive, falling 0.3% to $1.2528 in London. It’s easy to see the correlation. When politics gets turned upside down, so too does the stock market.
Conservatives have vowed to go ahead with hard Brexit, Labour seek to amend the current government’s Brexit negotiating terms and The Liberal Democrats haven’t ruled out holding another Brexit referendum should they be elected into power. With political uncertainty once again rising, how will this affect the UK housing market?
Well, there will be many people wishing Theresa May had stuck to her fixed five-year term. May, may have the election in the bag, but there is a real element of risk and this is what worries economists and housing brokers. When general elections are called the market reacts, and with Brexit already rocking the boat, the housing market could do without the added hassle.
However, it’s not all bad. There are only around seven weeks to the ballot date, compared to the usual six months run up campaign to a general election when anticipation starts to brew. Therefore, consumer hesitancy pre-run up to June 2017’s election will be short-lived.
What’s more, the outcome is expected to be a Tory landslide, leaving the political landscape unchanged. This will lead to less uncertainty, more faith in government, which is what May is keen to establish, and in turn, improve the economy. It could also help to ease the troubles that Brexit brought with it. So, although pre-election consumers tend to be cautious about buying and selling property, this election could in fact lend to a buyer and seller bounce back.