Home sales and lettings on the London market are set to rise again after the election as the industry breathes a sigh of relief about the outcome of the vote, estate agency Chestertons predicts.
With David Cameron returning to Downing Street, the property industry can rest easy that the proposed new tax on higher-value homes and controversial reforms such as rent controls and multi-year tenancies are off the table.
Robert Bartlett, group chief executive officer of Chestertons, comments:
“No one predicted such a clear-cut result, and with some form of coalition looking the most likely outcome before the country went to the polls, trying to predict which policies would be implemented was proving beyond political pundits and property market commentators alike, so homeowners and landlords can be forgiven for feeling in the dark as to which way to jump.
“Labour and Lib-Dems both backed the introduction of a Mansion Tax on homes worth more than
£2 million, which would have disproportionally penalised Londoners, especially those with outstanding mortgages or those in retirement who had prudently invested in property as a nest egg. As a result, many people were holding their breath and waiting before making a decision to buy or sell.
“Likewise, Labour’s proposed new laws for the private rented sector would have seen compulsory registration schemes, direct rent controls, fixed-term tenancies and added overheads for private landlords shortening the supply of decent rented homes and ultimately pushing up rents.
“With these proposals off the table, and the spectre of political uncertainty finally lifted, we can now all move on. We are already predicting the next few weeks and months will be very busy indeed.
“There are still issues to be addressed in the property sector in London, not least the need to boost housing supply, make the rental market more transparent and accessible, and unlocking opportunities for regeneration through a joined-up approach to planning and infrastructure delivery. We hope the new Government will continue to work with the property sector and consult properly on proposed changes so together we ensure that any new policies will work as they are intended and can help deliver the long-term sustainable growth and sensible innovations that our industry requires.”
Richard Davies, head of residential at Chestertons, adds:
“The prime residential markets in London will certainly welcome the clarity this result brings. Many clients in higher-value properties will have been making contingencies for a Mansion Tax coming in, while landlords will also have been scratching their heads at the raft of changes Labour would have implemented. Now the fog of uncertainty has lifted and the way ahead is clear; homeowners and landlords alike can look forward to sustained growth and dynamism returning to the market.”
