Property market will likely improve post-election

12 Dec 2019

Polling StationBritain’s general election is expected to boost the property market, with the prospect of resolving political uncertainty offsetting a trend of falling sales and modest prices in November. 

Residential property sales are forecast to reach their highest levels over the next 12 months, since February 2017. The latest monthly survey by the Royal Institution of Chartered Surveyors published on Thursday revealed improvements are expected across all areas of the property market. 

The net balance of participants posting increasing sales expectations for the next three months surged 11 percentage points last month, up from 5 percentage points in October, after remaining stagnant in negative territory for most of last year, reports the Financial Times.

The number of surveyors expecting house prices to climb over the next year was 33 percentage points higher than those who are forecasting a drop. 

“Whatever happens in the general election today, it is important that the new government provides reassurance both over the stewardship of the economy and the ongoing challenges around Brexit which continues to be highlighted in a disproportionate number of remarks made by respondents to the RICS survey,” said RICS chief economist Simon Rubinsohn.

“The latest set of results indicates that persistent economic and political uncertainty is deterring both buyers and vendors, and anecdotal commentary cites the general election and Brexit as stifling activity,” the survey said. 

Despite a number of participants reporting weak house prices during the month of November, with a net balance of minus 12 percentage points compared to minus 5 percentage points the previous month, the future of Britain’s housing market appears less dim, as the looming result of the UK’s first December general election since 1973 is set to prop up growth and encourage buyers.