Adrian Gill, Chief Executive Officer, Leaders:
The UK’s snap general election may have resulted in the confusion of a hung Parliament, but it’s clearly business as usual for the housing market.
While the process of working out exactly how the next government will be formed gets underway, people will naturally still want and need to press on with their property transactions – whether they are buying, selling, renting or letting.
Both the Conservative and Labour manifestos are committed to supporting people who want – and need – to move home, and to the expansion of new housing. So for those thinking about or currently in the process of selling or buying a home, any short-term uncertainty should not prevent them from making the right longer-term decision for themselves.
The fact is, the fundamentals of the property market are the same as they have been for the last decade - despite the uncertainties we have faced through three general elections and an EU referendum - and they all combine to create a positive and stable picture.
Interest rates are still extremely low and demand for property to both buy and rent drastically outweighs supply. This will continue to keep house prices and rents stable and engender the confidence the market needs to stay robust through turbulent times.
In times of uncertainty, the lettings market always thrives and we expect the buy-to-let market to continue to attract investors looking for good returns and a safe place to put their cash long term. For any investor, whether they hold their assets in equities, government bonds or bricks and mortar, there will be short-term uncertainty. However, of all of these, bricks and mortar is likely to be the least volatile and best long-term investment.
With up to a quarter of all households expected to rent privately by 2025, existing landlords and new investors can continue to invest with confidence in an asset that has delivered better and more reliable returns than any other type of investment over the last two decades. Any short-term fluctuations in the property market stand to benefit canny investor landlords who are likely to find opportunities to negotiate smart purchases in order to expand their portfolios.
The fact remains that, whatever may happen politically – and we’ve certainly seen a number of significant changes to the political landscape over the last few years - the property market is more resilient than most. House prices have always been cyclical but risen over the long-term and this will not change.
During times like this, it is more important than ever for anyone looking to make the best of the property market to consult a well-established team of local experts who can support and guide them through their property journey.