UK housing market remains stable despite election uncertainty

The UK’s housing market is showing resilience despite the upcoming General Election with the average price now £375,110 – a drop of just £21 on May’s figure.

That’s according to Rightmove which adds that the minor adjustment mirrors the typical seasonal trajectory seen in previous years.

There are still geographic price disparities as homes in the North do better than those in the South.

Rightmove’s index also reveals that five out of six of the country’s most affordable regions are hitting new highs in property values.

‘Market activity has remained largely steady’

The firm’s director of property science, Tim Bannister, said: “It’s always difficult to predict how home movers will react to sudden uncertainty, but looking back through our data, we can see that during previous election campaigns, market activity has remained largely steady.

“This election has followed a similar pattern so far, and the responses from our poll of over 14,000 people also supports the data, with the vast majority of respondents saying they will carry on with their home-moving plans.”

He adds: “However, some potential sellers appear to be watching and waiting rather than taking action, evidenced by a dip in the number of new sellers coming to market, particularly at the top-end.

“This is understandable when many of these sellers have more flexibility over when they act, but overall, it appears to be business as usual for the mass market.”

East of England and London have seen prices fall

However, the East of England and London have seen prices fall slightly but transaction agreements and buyer inquiries in all regions remain consistent.

Most buyers and sellers appear to be undeterred by political events and are still involved in selling and buying.

Rightmove points to some hesitation appearing among high-end market sellers who are adopting a ‘wait-and-see’ approach as the election unfolds.

Despite the election, transaction rates over the past month have risen by 6% year-over-year.

Buyer interest also shows an uptick of 5% compared to last year’s figures.

New listings have seen a small rise of 1% in the fortnight following the election call — a stark contrast to the previous two weeks’ 6% rise above 2023 levels.

‘Some of the housing proposals announced are a good start’

Looking at the party manifestos, Mr Bannister said: “Some of the housing proposals announced are a good start with positive intentions, however, they could go further in supporting the majority of first-time buyers to get onto the ladder or helping people in different circumstances to move.

“Mortgage rates have been elevated for much longer than most expected, and a first cut to the base rate would be a big boost to mover confidence, as well as having a far-reaching impact on the market should it, as expected, lead to lower mortgage rates.

“Lower mortgage rates will have the most immediate impact on the market; however, we hope that well-thought out housing policies will lead to sustainable market improvements over the long term.”

‘Seeing a bounce in buyer activity’

Matt Thompson, the head of sales at Chestertons, said: “We are now in the last days of the typically busy spring market and, compared to last month, are seeing a bounce in buyer activity.

“Particularly since the date for the General Election has been announced, house hunters who have been on the fence due to political uncertainty have become more confident about going ahead with their purchase.

“As a result, we expect June to conclude with a heightened level of buyer interest.”

Nathan Emerson, the chief executive of Propertymark, said: “It’s extremely positive to see stability within the housing market and despite a challenging period of high inflation and elevated interest rates, we are witnessing people approach the market with growing confidence.

“If conditions permit, we are hopeful to see the Bank of England start reducing the base rate when they next meet on Thursday.

“Should this happen, a potential raft of competitive mortgage deals over the coming weeks would be very welcome news for many people.”

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