The recent announcement for a snap general election on June 8th 2017 came as a bit of a surprise to many. For landlords, general elections can create an amount of uncertainty within the property market and rental sector. Although certain areas of the UK’s property rental market have been running hot in recent years, despite strong market conditions, major political events can often lead to worrying times.
General elections often affect the housing market and housing prices. With June 8th quickly approaching and the recent result of Brexit, landlords may be feeling a little restless about the future. It’s well known within the property industry that transactions tend to ease off during the build-up of a general election. Buyers and sellers wait to see what the outcome is. Spring and early summer tend to be a busy period for the UK’s housing market for both buyers and sellers.
Before the 2015 election on May 7th, property transactions slumped, however they did recover after the election, throughout 2016 and into the early part of 2017. This trend has continued. The 2015 statistics showed that the run up to an election often has some effect on how many houses are sold. To give you an idea of how an election can affect the housing market, check out the following number of houses sold pre-election 2015:-
2015 February 72,056
Statistics from Which?
As you can clearly see after the election on May 7th in 2015, properties sold increased significantly especially in June.
Property prices are expected to rise again after the June 8th election according to many industry experts. Some specialists are even claiming that a typical family home is set to see the biggest price rise with a 5.4% year-on-year jump. To date in 2017 the price of properties available on the market has risen for the fifth consecutive month and this is expected to continue after the election. So, if you’re a landlord, now is a great time to rent your property out and add to your current property portfolio.
The forthcoming general election is actually good news for landlords. Property price increases will enable landlords to increase the cost of rent to tenants. With such a demand for property, the buoyant rental sector is still a great investment opportunity. Pre-election periods usually cause a pause in activity. However recent price growth and strong year to year numbers of sales agreed in 2017 especially in family homes, indicate many investors are undeterred. With rental demand exceeding supply in many parts of the UK, it’s a win-win situation for landlords.
High and unaffordable house prices in the UK means that the demand for rental homes is on the rise. According to recent statistics, around a third of retirement savers are now considering investing in buy-to-let properties. For established and new to-be landlords, the rental property market is still a sound investment for a good return on their money. Don’t see the 2017 general election as a threat to the housing market and house prices. For landlords, times have never been better.