5 Ways the Election Will Impact your Next House Move

The 7th May 2015 – the day of the General Election and possibly the most important day of the year for the UK as we decide who will shape the nation for the next five years. One topic that’s drawing a lot of attention is the housing market.

“How could first-time buyers be affected?”

“Will the new policies actually be implemented and when?”

“What are the impacts if I plan on renting?”

Property for saleThese are all good questions that you, the voters might be asking and the next government (whether that’s a coalition or minority government, which both seem quite likely) will have to address. Here are 5 ways we believe the upcoming election could impact your next house move.

 

All information stated is what has been promised by each party thus far and may be subject to change in the future.

 1. The Price of a Home for a First-Time Buyer

Just getting on the property ladder is tough, so all the main parties are proposing action. Whether or not it is enough remains to be seen, but the attempt by the Conservatives to re-introduce right-to-buy is a bold move. Both The Conservatives and the Liberal Democrats are offering first-time buyers a Help to Buy ISA whilst the Lib Dems and Labour are proposing to build over a million houses to fulfill demand and keep prices down.

Whatever happens in the election, our verdict is that it will still remain tough for first-time buyers although things may get a little easier over time.

2. Keeping Rent Costs Down

To let signs

If purchasing a house is not for you, then renting has its benefits, but the upcoming election is unlikely to make a huge impact. Only Labour and the Greens are looking to put a cap on rent or increases. Proposals to build more houses may increase availability and keep prices down but one million new houses won’t get built overnight!

3. Renting: For How Long? 

A short term rental agreement can be a worry when you don’t know where you will live in 6 months time. Both Labour, Lib Dems and the Green party have proposals to address this with policies for longer term tenancy agreements.

4. Caring for your environment, in beautiful surroundings

Nottingham - Second house price riser

If you care for the environment and your surroundings, there are policies to please! The Labour Party and Lib Dems both have proposals for ‘Garden Cities’, whilst the Green Party and UKIP also have interesting policies around the protection of Green belt land. 

This doesn’t guarantee there will be more houses in beautiful surroundings but more ‘Garden cities’ and protection of Green belt land all helps to make Britain a beautiful place to live!

5. The Economy

Once the election is over, it could get complicated in terms of who will be in government. Initial uncertainty could have a short term impact on the economy while a minority government with little power will struggle to get its policies adopted unless they are appealing to other supporting parties. This could also be a good thing as policies need to appease a wider audience on not just the rich or the poor.

The next election could also impact interest rates on which mortgage rates are based. We aren’t going to make any predictions on how the economy could be impacted but suffice to say it could be interesting!

 

Below is a table with some of the key policies we uncovered during our research:

 

What They’re Promising…
Conservative
Labour
Lib Dem
Green
UKIP
To Build
200,000
1 million
1.5 million
500,000
For First-Time Buyers
Help to Buy ISA and
20% discount to first-time buyers under 40
Give priority to local first-time buyers in new housing areas
Help to Buy ISA
In the Rental Market
Long term tenancy agreements in the private sector and Cap on rent increases
Rent to Own policy and Ban landlords letting out poorly insulated homes
Cap rent and introduce longer tenancies
To Introduce
Capital investment in housing
and local authorities given “use it or lose it” powers

New Towns and Garden Cities.

Right to Grow given to communities.
New homes advertised in the UK before overseas.
At least 10 new Garden Cities and
30,000 Rent to Own homes a year by 2020
Bring empty homes back into use
Brownfield agency for grants and loans.
 
Protection of green belt land and
Referendums on major planning decisions.
 
New homes exempt from stamp duty on first sale and
Social housing prioritised for locals

 

Sections with a dash ( – ) are those which have not been announced
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