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How will the 2024 General Election Affect the Housing Market?

How will the 2024 General Election Affect the Housing Market?

May 30th, 2024

By now, it will not be news to you that a general election has been called for 4th July 2024. As the UK prepares to hit the polling stations this Summer, those in the market for new homes or looking to secure their mortgage rates should pay close attention.

In what is currently an unpredictable housing market, there will be many anticipating the election’s effect on property prices and mortgage rates over the course of the year.

How Will the General Election Affect People’s Moving Habits?

The general consensus appears to be that a general election will not drive potential movers away from the market. Estate agent Savills conducted a survey in March which showed that 79% of people with moving plans in the next 12 months were committed to doing so, and the prospective general election had no effect on this.

Context is Key

For CMME clients, it’s important to assess the context surrounding this election. A base rate drop is expected before the end of the year, and while many expected this drop as early as June, these expectations have now been pushed back to August for many.

However, inflation saw a significant drop as of recent, reaching its lowest figure since 2021. This subsequently raised questions over what the Bank of England will in fact do with the next base rate announcement in June, since the purpose of the 5,25% base rate is to curb inflation, which appears to be taking effect currently.

Many will keep their eyes peeled on the upcoming base rate announcement on 20th June 2024, exactly two weeks before the general election is set to take place.

Would a Change in Leadership Affect Current Housing Market?

The election pits Conservative leader Rishi Sunak against Labour’s Keir Starmer, and at the time of writing, Labour have the upper hand in the latest polls, with the election just over a month away.  

Estate Agent Savills highlighted how a change in leadership wouldn’t immediately shift the short-term market landscape. Despite this, Labour’s ambition to deliver 1.5 million homes over the next five years has potential to impact house prices and mortgage rates positively if he comes to power.

As the UK heads into another general election, the housing market—and by extension, mortgage rates—seem poised for an active summer.

Those looking to secure or adjust their mortgage rates might find this period particularly strategic, underscored by the potential for post-election policy impacts.

There is no one size fits all piece of advice to when it comes to planning your next step on the property ladder around this time.

That is why CMME are on hand to take into account your unique circumstances and give bespoke advice tailored to you. Simply click here to get started with one of the team today.

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