After weeks building up to the General Election, the votes are in, with Labour gaining a landscape victory. Traditionally, we’ve seen property markets pick up after an election – whatever the result is, so we’re anticipating a property surge once as the later months of summer arrive.
But should we expect more? What exactly does the General Election mean for the property market? With their slogan being ‘Get Britain Building Again’, surely the property landscape looks hopeful? Here, the team at Shortland Horne explores.
What the party’s promised
While most of the main property policies shared similarities – focusing on support for new buyers and building more homes – there were several clear differences between each manifesto:
- Labour: Labour pledged to return the first-time buyer Stamp Duty exemption to £300,000, as well as promising to build 3,000 a year – a total of 1.5 million houses over the next five years.
- Conservatives: As an incentive to get first time buyers on the property ladder, Conservatives said they would reduce capital gains tax for landlords who sell to a tenant, while also committing to constructing 1.6 million new homes.
- Lib Dems: Labelling the housing market as a ‘crisis’, the Lib Dems revealed a target of 380,000 new homes, which would include 150,000 social houses.
What will happen to mortgage rates now we have a Labour Government?
Mortgage rates has been the hot topic of conversation for property experts over the last few years, with figures rocketing up to more than seven per cent in some months.
With a Labour Government in charge, experts anticipate interest rates will start to fall pretty soon – with mortgage rates doing the same. Which, of course, will make the idea of moving house more attractive for many.
What does a new Government mean for first-time buyers?
Labour has pledged to introduce a ‘Freedom to Buy’ mortgage guarantee scheme. This shares similarities to the existing ‘Help to Buy’ scheme in England and Wales, by helping first-time buyers get a mortgage with just a five per cent deposit.
The main difference between the two schemes is that ‘Help to Buy’ is due to expire in June 2025, while Labour are making ‘Freedom to Buy’ permanent. It’s expected that this will help around 80,000 young people to buy a home over five years.
Furthermore, Labour said they would give first-time buyers priority on buying homes in new developments over overseas investors.
Stamp-duty tax
While Conservatives promised to abolish stamp duty land tax (SDLT) for first-time buyers on properties worth up to £425,000, Labour has reduced this to £300,000 – in 2025. Labour have also said they would increase a higher stamp rate on purchases of residential properties by non-UK residents by one per cent.
Are you selling your house? Looking to find your dream home?
Are you thinking about putting your home on the market? Are you ready to find your next property? If you’re based in Coventry or the surrounding areas in the Midlands, then get in touch with the friendly team at Shortland Horne. Our property experts will guide you through the next steps.