e.surv Chartered Surveyors, the UK’s leading residential surveyor and valuer, predicts that looming cuts following the election, coupled with uncertainty over a hung parliament, could slow an already stagnant property market.
Richard Sexton, e.surv business development director, says: “There has been clear evidence in recent weeks of a slowdown in the residential property market as prospective sellers and first-time buyers hold their breath and await the election result. With a hung parliament, this slowdown is likely to continue until we have political stability. Even in this eventuality, there will be wrangling over policy which may cause further pause. The summer sporting season and World Cup could act as a further drag, causing a potentially unsettled summer for the housing market.”
Commenting on the New Build market specifically, Richard continues: “With targets for new home builds potentially now lagging 10 years behind demand, there is widespread acknowledgement that the current policy and approach to growing housing stock have not worked.” Despite this, Richard believes that as a result, there could be a possible silver lining to the dark clouds for the buy to let market. He adds: “As demand outstrips supply, this in itself creates further difficulties for those not yet on the housing ladder and we are likely to see a growth in the rented sector as a result.”
“However, without effective government intervention the current shortage of supply will continue to worsen until a crisis point in the sector is reached. We are disappointed that housing was not flagged as a national priority of any party, and urge any new coalition government to move this issue up the national agenda.”
Longer term, property remains a national obsession and is intrinsically tied to consumer confidence. Richard concludes: “Confidence in economic recovery is the key for a buoyant housing market and this will depend on having a stable and focused government that can work together to find effective solutions whilst avoiding the pitfalls of political infighting that have dogged coalition governments in the past"
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