The hung parliament situation that arose last Friday hasn’t done much for the prosperity of house prices up and down the country, and neither has it bolstered the outlook for buy to let property either, according to property experts.
House prices are typically affected by the slightest of movements in politics and spending announcements, so, naturally, with the cataclysmic effects of Brexit and now the hung parliament conundrum, they are feeling the strain.
Experts warn that house prices will continue to be muted and will be very quiet in terms of purchase turn-over as people demonstrate that they are worried and confused about what may happen in the future. People are genuinely fearful of the job situation and what all the politics disarray will mean for the future of finances in general.
The prospect that another general election may take place in the coming months is also making people nervous about making any financial commitments, as they just don’t know what party and what policies they are going to get, and that could ultimately determine whether they are comfortable with their new purchase or begin to struggle.
Buy to let landlords are also facing a nervous time ahead. They’ve already had many tax cuts and charges put in place to rein in the control that they can have over properties, and this latest political mis-fire will more than likely see them frustrated too. Since the Tories came to power, buy to let landlords have seen many changes and you’d be forgiven for thinking that, collectively, landlords would be fearful of the Tories getting back in charge – but this is not the case. Labour’s plans for buy to let landlords is believed to be even harsher so the prospect of Labour getting their hands-on power is making many landlords a tad nervous.
Ultimately, whether you’re a first-time buyer, someone who is looking to move to a larger property to cater for an expanding family, or you’re a buy to let landlord, the timing isn’t great at the moment, and probably isn’t going to get any better anytime soon. The politics of the country is in disarray and this directly impacts on the confidence of people in the property game and the confidence of normal Britons who want stability in their life.
We personally believe that the Tories need to settle down and stop the revolt against Theresa May otherwise we’ll have leadership contests which will further hamper the progress of the country and, in turn, the prospects of the British people.