There has been much talk about what effect the forthcoming general election is going to have on the property market and in simple terms it will undoubtedly have some destabilizing effects.
In view of the positive impact that a healthy housing market has on the economy as a whole, all main political parties should keep uncertainty to a minimum. A strong housing market is good for estate agents but it is also important for a myriad of others in the economy including builders, plumbers, electricians, kitchen manufacturers, gardeners, solicitors, architects and local tradesmen of every description.
I expect that any effect will be short lived as there are strong indications for the market to continue recovery. Firstly, there are still multiple buyers in the market and limited quantities of houses available to buy. Secondly, residential property still represents a good investment producing yields of 4%-7% plus medium and long term capital appreciation, this is all helped by the predictions for interest rates to stay low for the foreseeable future.
We are all aware of the hard decisions that are going to have to be taken by whoever wins the election, but as long as sensible realistic house values prevail buying a property either to live in or as an investment will continue to be a top priority for many.
Fergus Peers, Partner Archers Town and Country