Search
Search
Business
On 22nd May 2024, UK Prime Minister Rishi Sunak announced that a general election would take place on 4th July 2024. As is to be expected, the announcement and impending general election raised many questions, one of which was what impact will this general election have on the property market? Historically, the property market tends to slow down in the lead-up to an election as people adopt a “wait and see” approach. However, there is evidence pointing towards the 2024 general election having an overall positive impact on the property market and little sign of a ‘slow down’.
Joint Senior Partner, Andrew Dewar shares his insights on the upcoming general election and property market;
Following Boris Johnson’s resignation in 2022, talk of an early general election has continued for some years, causing a degree of uncertainty. But with the maximum term of a parliament being five years, a general election in 2024 was always somewhat of a certainty. We have seen a sharp rise in activity in the property market in the first quarter of 2024, evidence that, as with the financial markets, the property market has already factored in the chances of a change of government. The time of year also has an impact on the influence that the general election will have on the property market. The lead up to the 2024 general election is in the height of Spring/Early Summer, a traditionally busy time for the property market. And then there’s the short time frame to the election. With little over 6 weeks between the announcement and the election itself, it is unlikely that there is sufficient time for a slowdown in the property market to develop.
This anecdotal evidence is backed up data recently released by Rightmove.co.uk. The UK’s largest property portal’s recent Spring Survey revealed that 95% of home-movers said the upcoming general election will not affect their moving plans. Whilst Rightmove data from previous elections shows us that the property market typically remains steady during an election period. In 2015, demand from buyers was consistent leading up to the election, and experienced a post-election boost in June when the annual change moved from a 9% increase to an 18% increase. Similarly in 2019, demand remained stable across October and November, and saw an annual increase of 13% in the December election month, followed by an annual increase of 14% in January 2020.
With little to suggest that there will be a pre-election ‘slow down’, and the possibility that the market may be reinvigorated by the clarity and stability that comes with a definitive election outcome, collectively the evidence suggests that the property market will see a positive impact as a result of the general election. Our advice to you is this. If you are underway with a move already, carry on. If you have an intention to move but have not yet started, don’t delay because of the election. We are always here to help of course.
