Housing market after the election

[FutureFeelsBleak]

I realise the ink is still wet on the ballot papers, but what is the general consensus over what a Labour gov is likely to mean for the market? Things stopped moving here (Surrey) at about the time we went on the market, so I'm hopefully that things will pick up again now.

💥🔥💣

you may as well just give your house away now.

The issue is the cost of borrowing, not the face of number 10.
It doesn't look like borrowing costs will change much this year now. Maybe a small decrease in base rate - but not enough to really make much difference.
I think though the developers, and maybe owners selling to first time buyers, could get a little of a boost in interest. I wouldn't expect any major changes from where we are now.

I'm selling one for 50p if anyone's interested
It is in Jaywick though 🔥🧨

I think it would be speculation now. We won't know until a few weeks down the line.

We're in exactly the same position, in a similarish SE location. Were getting steady viewings, but they dried up pretty much as the election was announced. Even dropping price didn't help. Almost nothing is coming on the market locally, except at the lower end (we want to upsize to a detached house). We wanted to move before kids big exams coming up next year 😢

Will you take 45p?

Maybe in Clacton?

Ooh, hope so!

Same. Ours went on the market the week before the election was announced with our first viewing actually happening as Rishi stood in the rain calling it!

There's a few at 30p going in Ashfield, so I've heard...

😂

Impossible to be sure but traditionally, the property market does slow in the run up to an election and during periods of uncertainty.
I can't see things picking up rapidly immediately as we will have some uncertainty for a few weeks at least, plus we are approaching school Summer holidays and the cost of borrowing hasn't changed significantly so houses are generally unaffordable. I've seen several comments about lack of (a certain type of property) in their areas, although nationally, stock levels are pretty high, at pre pandemic levels. I expect more people will decide to list their house from September but that's just my best guess. I also think that prices will fall in the second half of the year.

Why? do you like taking from people that have worked for what they have and getting it for nothing?

I would expect this to continue, but who knows.

uk.finance.yahoo.com/news/uk-house-prices-fall-june-071357776.html

I've never known any change of Govt. make any serious difference to the housing market and I doubt if this will be the first.

If this article is anything to go by, then house owners could be in for a boost.

https://www.thisismoney.co.uk/money/mortgageshome/article-13596361/What-does-Labour-Government-mean-house-prices.html

That is a rise of £110,527 - similar in cash terms to the rise seen in the 13 years of Labour. However, in percentage terms the house price rise under the last Labour Government was 2.75 times faster.

So the average house price did rise by £110k under conservatives which works out about 64% over their 14 year term, but they also rose by a similar figure under the previous Labour government which works out about 176%

Conditions are much different this time around. The world is swimming in debt and inflation as destroyed and unfortunately will continue to destroy so many businesses. Especially in England I believe house prices have dropped much further than the average figure from the ONS is showing due to more of the higher-end properties being sold which is skewing the averages.

For most people wage rises haven't kept up with inflation and these figures are also being skewed by the finance & banking sectors. We are also on the cusp of another financial crisis with so many banks mostly in the US in big trouble over their Commercial Real Estate loans and Bond Portfolios already losing trillions. I have always said this when America goes into a recession it will take most of the Western countries down with them.

This website is part of Mail Online and that article is basically a party political broadcast for the Tories.

I think interest rates are very unlikely to return to the abnormally low post 2008 crash levels.

Agreed!
The whole premise of that article is wrong.
I agree that house prices have fallen in many places more than is visible from the very laggy ONS data.
I totally agree that we are v likely headed for GFC2, whether it is this year, next year or in a few years time. The US economy is clearly headed downwards, even in the official data, as are many other economies. I can't see this having a positive effect on real asset prices once things deteriorate further.

Depends how close you are to an outstanding state school.

You can tell from risers in the FTSE that Help to Buy is coming back, maybe in a big way.

The politicians have realised that most people's morals left ages ago, house prices are the only thing that matters as opposed to anything else.

More wealth inequality is fine as long as you are on the right side of it. Given the choice of +£50k HPI for them or £50k cheaper houses for their kids, it's obvious what most people would accept, even though the rapid uptick in house prices was nothing to do with them and more governments distorting the money supply.

Really it would be better for a government to wean the public off obsessing about high prices and actually lower ones would be better for future generations. But most people are compromised because of their own situation so would never vote for it.

The most measured and sensible answer here, thank you @DrySherry

I don’t believe a change in government affects the property market at least in the short run.
I think it comes down to affordability and interest rates. Rates are still too high to accommodate what already seems like really high prices on properties
So until something gives I’m afraid we’re still going to keep experiencing a slow market.

Like you said the US economy is heading downwards. Also the US is our biggest customer when it comes to financial services and I have no doubts here in the UK we are going to be massively affected by this just like in 2008.

The Federal Reserve and the FDIC warned the big four large banks in the US about their derivative positions and that they need to get those under control and figure out how they'd be able to unwind them in a crisis. The big four banks in the US have $168 trillion in derivatives and that is such a large number, I appreciate some people might have a hard time conceptualizing that but that's almost six times US GDP. If they were to go bankrupt they'd have a procedure to unwind everything and even the FED said that they haven't done a good enough job on the derivative side.