Boris Johnson triumphed in the December election with a massive majority. His landslide win has already proved significant for the UK property market, boosting the stability of the market and making homeowners far more likely to consider putting their properties up for sale.
Political uncertainty has been causing problems for UK property sales for a number of years now, driving prices down and leaving homeowners hesitant to venture into an unpredictable market. However, leading experts have revealed that this period of uncertainty is now drawing to a close, and the numbers of UK homeowners on the move will rise rapidly as a result.
The buoyancy of the property market will benefit all manner of different businesses, and will be welcome news for companies targeting home movers. Removal companies in particular are set to gain a huge advantage over the coming months, in light of the huge uplift in property transactions that is being predicted.
Andrew Montlake, managing director of mortgage broker Coreco has revealed that transactions will increase “early in 2020, as buyers and sellers who have played it safe put their plans into motion.” He went on to add that a “huge amount of pent-up demand out there looks set to be unleashed on the market.”
Montlake’s predictions have been supported by several other leading figures in the property market, such as Jeremy Leaf, former residential chairman of the Royal Institution of Chartered Surveyors. Agreeing that the election result would improve stability in the run-up to Brexit, Leaf remarked that “the most important thing for the housing market is that the result brings some stability, albeit short-term at least until we see a clearer timetable for Brexit”.
The positive impact of the election has already been seen in the stock market, with housebuilder stocks surging in the wake of the Conservatives win. Shares in housebuilder stocks such as Barratt Developments BDEV rose by 12.7%, with Taylor Wimpey TW increasing by 15%.
Businesses targeting homemovers will be glad to hear that this increase wasn’t short lived, either. Over the past month, UK house prices have risen at the fastest rate on record for this time of year, supporting expert opinions on the effect of the election on confidence levels. The price of properties coming onto the market increased by 2.3%, with almost 65,000 new UK properties marketed over the last month.
Targeted property insight specialist TwentyCi and TwentyEA has published data which adds further weight to the opinions of industry experts. Examining property data following the election, TwentyCi and TwentyEA’s data analysts found that sales agreed rose by 6%, with exchanges also rising by 3%. This analysis supports forecasts on the effect of political stability on the market, and suggests a strengthening in the market despite another Brexit deadline looming.
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A degree of uncertainty remains where Brexit is concerned, but with the recent election giving a more definitive result for the Conservatives, political stability has improved massively over the past month.
This stability can only be good news for the property market, helping to boost sales and increase prices going forward. Companies targeting homemovers will see the benefits over the coming months, as exchanges increase in light of greater confidence levels in the market.
TwentyCi are specialists Home Mover marketing, supplying our expertise to a number of different sectors. If you’d like to speak to any of the team about your Home Mover marketing needs, call us on 01908 829300 or email the team at MoverAlerts@twentyci.co.uk.