The 2024 General Election and the housing market

How the Upcoming General Election May Affect Homebuyers in the UK in 2024

With the general election coming up in 2024, you might be wondering how it could impact your plans to buy a home. Elections always bring a bit of uncertainty, and this year is no exception. Let's break down what you should keep an eye on if you're thinking about buying a house during this time.

First off, let's talk policies. Different political parties have different ideas about housing, so a new government can mean changes to existing policies or entirely new initiatives. For instance, stamp duty can be a big factor in the cost of buying a home. Some parties have commented on plans to cut it to stimulate the market, while others could increase it to boost government funds. There are also schemes like Help to Buy and first-time buyer programs that could get a boost, a cut, or a total makeover depending on who wins. And don't forget about policies aimed at increasing affordable housing – these can really affect how many homes are available and what they cost.

Interest rates and economic stability are also key players here. The economic strategies of different parties can affect inflation and job rates, which in turn influence mortgage rates. If the new government is seen as business-friendly, it could help stabilise rates and boost confidence. On the flip side, political uncertainty can make things a bit shaky. Even though the Bank of England makes its own decisions about interest rates, the overall economic environment shaped by government policies can still have an impact.

Market confidence can be a bit of a rollercoaster during elections. Buyers and sellers might play the waiting game, which can slow down the market. But a clear and decisive election result can quickly turn things around and get the market moving again. Foreign investment is another thing to watch. The political climate can either attract or deter international buyers, depending on policies related to taxation, regulation, and economic stability.

Regulatory changes can also shake things up. New government regulations can impact various parts of the home-buying process. Changes in property taxes, like council tax and capital gains tax, can affect how much it costs to own a home. And if there are new rules for landlords, like rent control or increased regulations, it can impact the buy-to-let market and rental prices, which in turn affects the broader housing market.

Different regions might feel these effects in different ways, depending on local priorities and investments. Promises of new infrastructure, like better transport links or urban development projects, can boost property values in certain areas. Plus, regional governments and devolved administrations might have their own housing policies that get influenced by the general election, which can affect local markets.

While the upcoming general election brings some uncertainty, staying informed about potential policy changes can help you make better decisions. Keep an eye on party manifestos, understand economic forecasts, and chat with mortgage professionals and estate agencies to get a good grasp of what's going on as the political landscape shifts. If you have any questions or need help navigating the market during this time, Mortgage Star is here for you. Reach out to us for advice that's tailored to your needs.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE