Mortgage loan enquiries have seen a re-bounce after the General Election, according to independent advisor deVere Mortgages.
The company says it has observed a “noticeable surge in serious home loan enquiries” since the vote on 7 May.
“Since the election outcome was announced our mortgage consultants have reported a noticeable surge in serious home loan enquiries.
“Demand for mortgages has been strong all year, but the volume of enquiries has increased by more than 50 per cent over the last seven days, compared to the previous week.
“The majority of these enquiries were from overseas buyers and British expats who want to purchase a UK property but who had been, for various reasons, waiting to see the outcome of the election before pursuing,” Kevin White, head of ofinancial planning for the UK market at deVere Group, said.
The general expectation among many professionals on the property market is that there will be a recovery in the near future following the slowdown in the few months before the election.
The election result has been welcomed by the majority of market players and there is a great deal of confidence in the policies proposed by the new Conservative government.
Many estate agents commented in the days after the election that the industry breathes a sigh of relief over David Cameron’s majority win.
Tom Elliott, international investment strategist at deVere Group, explains:
“It is to be expected that there was a significant uptick in mortgage enquiries in light of the Conservative win. It appears that investors held off in fear of a left wing government taking power.
“The UK property market should benefit from David Cameron’s government.
“There will be no Mansion Tax, and indeed property will be slightly less taxed if the Conservatives carry out their promise to exclude property under a certain value from inheritance tax.
“More generally, the election result has confirmed that Britain remain a pro-business, pro-property owning country backed up by a robust legal framework. The statist alternative, proposed by the Labour party, that would have led to more government intervention in the economy has been revealed to have little popular support.
“Additionally, the non-dom tax status will continue to be available to wealthy foreigners, even if it is further modified. This will continue to encourage inward investment and spending in the UK, particularly in property.
“The likelihood of continuing very low interest rates –supported by this week’s Bank of England inflation report- will also fuel demand.”
