Post-election property market - What happens next?

Post-election property market:What happens next?

The dust has now settled on the post-election furore and those with a vested interest in buying property - whether that's to live in or as an investment - will be wondering what might be in store for the London market.

Mansion tax speculation ends

The biggest post-election point for those buying and selling property is the failure to introduce a mansion tax on properties worth £2 million or more. The top end of the London market had slowed considerably in the run up to the big vote, with home movers biding their time until the new Government was confirmed. With the threat of a mansion tax now lifted, sales of £2 million plus properties are free flowing once again, with the summer and early autumn of 2015 set to be peak periods for North West London estate agents like TK International.

House price movement

House prices will largely be affected by how many homes come onto the market as we head into the second half of 2015. If there is a limited supply of stock, we may see uplift in values, especially as this will follow several months of flat-lining house prices in prime areas. Demand from buyers is a crucial factor, and this can be driven by local purchasers as well as by international buyers who are affected by global events.

Build more homes

David Cameron is now under pressure to address the 'supply and demand' of property across the country, especially in London. A boost of new homes will help keep house prices stable and hopefully prevent unsustainable spikes in value. More regeneration projects - such as those seen at Nine Elms near Battersea in South London - are needed to keep London in line with other world cities and provide more choice for those buying property. We wait to see if the Conservative Government will deliver the 200,000 new homes promised, as well as freeing up more brownfield sites for future development.

Reform the rental market?

Not everyone needs or wants to buy a property and the private rental sector in prime London neighbourhoods is booming. Already things are changing, with the Queen's Speech setting out plans for every landlord (or his letting agent) to eventually check the immigration status of every new tenant. There's also the expansion of the landlord licensing scheme (currently down to individual councils) and a £1 billion Build to Rent programme in action, designed to tackle the shortage of quality rental properties.

If you'd like to discuss any aspects of the London property market, whether you are buying property, if you wish to sell a property or would like to make a buy-to-let investment, contact TK International today.

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