While new/old Prime Minister David Cameron is appointing a cabinet, many wonder how much of the promises featured in the Conservative manifesto would the new government be able to meet.
Property Frontiers, an international property and alternative investments provider, is rounding up all policies that they consider would have impact on property investments and the market in general.
According to their analysis, the election result is good news for the housing market as it will help its continued recovery, while the expected further strengthening of the economy will ensure that mortgage rates remain low.
Property Frontiers makes the following comments:
UK house prices
“According to Zoopla, property prices have risen 9.7 per cent on average across the country over the past five years under the Conservatives, largely due to an improving economy, higher employment and policies designed to further engage property ownership and investment. As such, allowing the Conservatives to finish what they started is likely to result in the continued recovery of the UK housing market.
Low mortgage rates
“The Conservative Party Manifesto pledges to keep mortgage rates low by continuing to work through their long term economic plan – providing longer term financial certainty for investors.
Supply
“For nearly three decades, the supply of housing – both private and public – has fallen well short of the level needed to match predicted increases in demand. The Conservatives are championing home ownership and property owning democracy through new policies, by planning to build 200,000 starter homes for first-time buyers by 2020, more garden cities and a further 400,000 new units from brownfield land.
“The Help to Buy scheme, aimed at first time buyers, will also help stimulate demand for new build homes.
“Other factors including increasing the higher income tax threshold from £42,385 to £50,000 and stable interest rates will free up more disposable income for investors.
Continuing economic stability
“Confidence and stability result in a buoyant economy and this will have a huge impact on the UK property market. The Conservative party remaining in power is excellent news for landlords. We believe the rental market is likely to strengthen, fuelled by strong tenant demand and no market meddling, thereby leaving investors in a strong position.”
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“As with any general election, promises and pledges don’t always turn into government policy, but now that we have more certainty, we’re expecting a buying surge from investors looking to take advantage of the post-election turmoil,” Property Frontiers concludes.
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