child mortarboard gbp briefcase bath coffeecup tree twitter search crosshair fax house papers sort house-pound brochure list-items notes printer video-camera video virtual-video bath bed camera floorplan heart-empty heart-filled heart-empty-thin heart-filled-thin sofa calculator compass share clock list map-pen map-pin pencil save business-card letter phone heard people pointer cross linkedin google-plus facebook arrow-right close triangle-down my-wink my-wink-thick house-circle loading-spinner bell close-circle dog link pinterest school transport wardrobe arrow-up one two three four five six seven tick

Post-Election Confidence Floods into UK Property Markets

Property markets around the country expected a rollercoaster ride during the first half of this election year. Concerns of Labour's 'mansion tax' stalled the luxury homes market and resulted in an international investment standoff as the country nervously awaited the post-election result on 8 May. Contrary to every opinion poll during the campaign, the Conservative Party quickly realised that they would once again occupy Parliament after the results of the exit poll hit our screens. As Labour's hopes dwindled, asset-rich owners across the country breathed a sigh of relief. Soon after, this relief galvanised into a rush of property activity to snap up more than £1bn worth of fresh property on the market. The true value of property The 2015 election has demonstrated the importance and influence of property assets in the larger UK economy. Property policies have not held such high importance than after the Second World War when Labour's Clement Attlee won the election on a promise to rebuild bombed streets across Britain. Understanding the importance of the industry, the Conservatives positioned themselves early as the party for homeowners with the introduction of a new stamp duty levy that benefitted a staggering 98% of property owners across the country. Lending to property companies has risen sharply to more than £45bn as property markets re-enter a boom while other asset classes fall by the wayside. Levels of margin and healthy capital growth are currently causing massive ripples in London property in particular that are hard to ignore. Even international investors, who will now be affected by the strong value of the pound, haven't been deterred from snapping up prime London property. Satisfied prime markets News of a Conservative majority was certainly music to the ears of those in prime property districts. It was calculated that 96% of those that would have been affected by a mansion tax were situated in London - this caused a temporary stall in the markets and a surge of new sellers prior to 7 May. The cautious climate followed by a boom of activity echoes the stages witnessed in the three months following the 2010 coalition result which underwent an average jump of 17% in the number of new sellers to the market. The majority result proved to be the confidence boost that reignited activity in the prime London market ' around £100 million changed hands on 8 May alone. A six-bed, £1.575m Battersea property, a £9.5m freehold house on Eccleston Square and a £2.75m Mews House nearby are just some examples of properties coming onto the market since the election. Examples of gazumping have also been recorded during this highly competitive window, including a renegotiated contract between a buyer and a vendor scrapped only for the property to be put back onto the market and sold the same evening. Maintaining a prosperous future Across the city, 26,000 homes were under construction in 2014. If London wants to maintain its position as a global property investment destination and continue buying and selling activity at its current level, housebuilding needs to increase to 50,000 per year. Now that market confidence has been restored, vast new developments can persist to bridge the gap. The two-kilometre Nine Elms District from Battersea Power Station to Vauxhall is just one regeneration project that will thrive without an impending mansion tax to blight its high-end housing stock. The 'back to business as usual' mentality will increase engagement inside emerging markets alongside prime stock. In April 2015, the Emerging Prime Index identified areas in the south west, such as Clapham and Battersea as ripe investment markets. As capital floods into London, prospective buyers will be seeking out gems outside central London before house prices increase into 2016. For many involved in the gradual development of the capital, the election result has maintained a level of confidence that is needed for growth. With Crossrail starting to pave its way underneath the city and the transformation of London landmarks and prime land still on course for completion, pre-election jitters seem to have almost drifted away.

Property markets around the country expected a rollercoaster ride during the first half of this election year. Concerns of Labour's 'mansion tax' stalled the luxury homes market and resulted in an international investment standoff as the country nervously awaited the post-election result on 8 May. Contrary to every opinion poll during the campaign, the Conservative Party quickly realised that they would once again occupy Parliament after the results of the exit poll hit our screens. As Labour's hopes dwindled, asset-rich owners across the country breathed a sigh of relief. Soon after, this relief galvanised into a rush of property activity to snap up more than £1bn worth of fresh property on the market.

London_pan

The true value of property

The 2015 election has demonstrated the importance and influence of property assets in the larger UK economy. Property policies have not held such high importance than after the Second World War when Labour's Clement Attlee won the election on a promise to rebuild bombed streets across Britain. Understanding the importance of the industry, the Conservatives positioned themselves early as the party for homeowners with the introduction of a new stamp duty levy that benefitted a staggering 98% of property owners across the country.

Lending to property companies has risen sharply to more than £45bn as property markets re-enter a boom while other asset classes fall by the wayside. Levels of margin and healthy capital growth are currently causing massive ripples in London property in particular that are hard to ignore. Even international investors, who will now be affected by the strong value of the pound, haven't been deterred from snapping up prime London property.

Satisfied prime markets

News of a Conservative majority was certainly music to the ears of those in prime property districts. It was calculated that 96% of those that would have been affected by a mansion tax were situated in London - this caused a temporary stall in the markets and a surge of new sellers prior to 7 May. The cautious climate followed by a boom of activity echoes the stages witnessed in the three months following the 2010 coalition result which underwent an average jump of 17% in the number of new sellers to the market.

The majority result proved to be the confidence boost that reignited activity in the prime London market ' around £100 million changed hands on 8 May alone. A six-bed, £1.575m Battersea property, a £9.5m freehold house on Eccleston Square and a £2.75m Mews House nearby are just some examples of properties coming onto the market since the election. Examples of gazumping have also been recorded during this highly competitive window, including a renegotiated contract between a buyer and a vendor scrapped only for the property to be put back onto the market and sold the same evening.

Maintaining a prosperous future

Across the city, 26,000 homes were under construction in 2014. If London wants to maintain its position as a global property investment destination and continue buying and selling activity at its current level, housebuilding needs to increase to 50,000 per year. Now that market confidence has been restored, vast new developments can persist to bridge the gap. The two-kilometre Nine Elms District from Battersea Power Station to Vauxhall is just one regeneration project that will thrive without an impending mansion tax to blight its high-end housing stock.

The 'back to business as usual' mentality will increase engagement inside emerging markets alongside prime stock. In April 2015, the Emerging Prime Index identified areas in the south west, such as Clapham and Battersea as ripe investment markets. As capital floods into London, prospective buyers will be seeking out gems outside central London before house prices increase into 2016.

For many involved in the gradual development of the capital, the election result has maintained a level of confidence that is needed for growth. With Crossrail starting to pave its way underneath the city and the transformation of London landmarks and prime land still on course for completion, pre-election jitters seem to have almost drifted away.

Related posts

Why Clapham is Driving Property Price Growth in 2015

According to the latest Emerging Prime Index, Clapham property prices are driving growth in London: one of the largest property safe havens markets in 2015. The leafy SW4 district has continued to provide a hot investment option for homeowners and investors with its array of Victorian and Edwardian villas. Since we first set up base in Clapham Old Town, the Winkworth team has become familiar...

Read post

August 04, 2015

MP Service: 2015 Assistance Available

Winkworth’s popular MP Service was first created in 2010 in collaboration with retired senior MPs from Britain’s major parties. The service has been praised as a discreet and streamlined portal that provides much-needed property assistance to Westminster’s newest recruits. Following the creation of the Independent Parliamentary Standards Authority (IPSA) in 2009, tighter guidelines were introduced restricting parliamentary allowance use to rental properties and hotel bills...

Read post

July 07, 2015

Winkworth MP Service: 2015 Assistance Available

Winkworth’s popular MP Service was first created in 2010 in collaboration with retired senior MPs from Britain’s major parties. The service has been praised as a discreet and streamlined portal that provides much-needed property assistance to Westminster’s newest recruits. Following the creation of the Independent Parliamentary Standards Authority (IPSA) in 2009, tighter guidelines were introduced restricting parliamentary allowance use to rental properties and hotel bills...

Read post

July 07, 2015

Find your Local Office

Find your Local Office

Speak to people who, quite simply, love their patch and love what they do.

Get a Free Valuation

Get a Free Valuation

Thinking of selling or letting your property, or just interested to know what it is worth nowadays?