The five features of the post-election landscape
“Disgusted of Tunbridge Wells” might be feeling a little better about things since last Friday, especially if he has a property investment. This is our take on the most important ramifications for the property market as a result of the Conservatives securing a majority in Parliament:
- The conservatives say that there will be greater certainty regarding economic policy which should allow both prime and secondary markets to gain momentum when compared to the pre-election period, resulting in a much more buoyant property market in the short-term;
- Mansion tax will now not be imposed and therefore the prime market (properties above £2 million) will see a boost;
- It is likely that capital will continue to ripple out of London to the Home Counties, especially given stamp duty increases imposed in December 2014. The prime commuter belt outside London – from Sevenoaks to Cambridge – is likely to see the greatest value increases.
- 275,000 affordable homes are to be built by 2020 and brownfield sites to be developed into 95,000 new homes. The exact location of these in relation to the Government’s infrastructure commitments will be important.
- The Conservatives say they are committed to Business Improvement Districts and other forms of business-led collaboration on High Streets. With retailing being the weakest commercial property sector over the last Parliament, their effect will be interesting.