The election of a new majority Conservative government is expected to be swiftly followed by substantial rises in house prices as investor confidence returns to the housing market.
Many had feared the combination of Labour’s proposed Mansion Tax, together with its plans to introduce three year tenancy agreements and rent increase caps in the private rented sector, would lead to reduced investment. Instead, the Conservative victory has been greeted with talk of increased prices by leading estate agents.
Needless to say, the London market is expected to lead the way with prices predicted to rise by up to 10% during the summer. There will be an inevitable trickle-down effect throughout the country, however.
The news is not just good for sellers. During the run up to the election David Cameron outlined these policies to help stimulate the housing market:
• The extension of the Right to Buy scheme to include 1.3 million housing association homes throughout England
• 200,000 new homes to be built for first time buyers who, if aged under 40, will be entitled to a 20% discount
• A new Help to Buy ISA aimed at providing a subsidised deposit for first time buyers
• £1 billion brownfield regeneration fund to help unlock sites for up to 400,000 new homes