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General Election Slows Housing Market

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http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/7786836/General-election-slows-housing-market.html

Uncertainty caused by the general election has put a dampener on the housing market during May, according to research by property intelligence group Hometrack.

The number of new buyers halved during the month, with agents reporting just a 0.5pc increase.

The number of people putting their home on the market rose by 1.8pc, down from 3.7pc in April. As a result, property prices grew just slightly at 0.2pc. The volume of sales agreed rose by 2pc, but this was down on the average rise of nearly 10pc seen during each of the previous three months.

However, the group reported that despite weaker demand from buyers and growing supply levels, there still remained upward pressure on prices due to a shortage of stock – a trend concentrated in southern England.

As a result, the scarcity of property has enabled estate agents to shift any new homes that came on to their books quickly, while also increasing their confidence to raise asking prices.

Hometrack expects housing market activity to remain subdued over the summer and into the autumn as households shift their focus from the election to the emergency Budget and the implications it will have on their take-home pay and the economy as a whole.

The group added that if the new Government announces plans to increase the rate at which Capital Gains Tax (CGT) is charged from the start of the new tax year, it could lead to a surge in homes coming on to the market as property investors take advantage of the current 18pc rate.

But it added that this would be unlikely to have much impact on overall house prices.

It's the housing recovery.....

Did we have the wrong type of election?

How did previous elections affect house prices/sales?

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How did previous elections affect house prices/sales?

They didn't, because usually the result is "expected" (even those that didn't actually go as expected), so no-one waits to see what happens.

This is the first time in my lifetime that no-one was "calling" the winner.

tim

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Well I guess the election excuse, makes a change from the snow excuse, that they dragged out as long as they possible could.

Yep and they are already planning ahead with the budget excuse and then CGT excuse and the world cup excuse. After that the market will rocket!!

Edited by Pent Up FTBer

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'As a result, the scarcity of property has enabled estate agents to shift any new homes that came on to their books quickly, while also increasing their confidence to raise asking prices.'

The villain of the piece correctly identified! Not sellers, EAs! Greedy sellers abound, sure, but the EA validates and endorses their greed by putting an inflated figure on the house. More often than not suggesting it in the first place.

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Lol. :lol:

In a hot market people get out in the snow, get out even if the world cup is on to buy properties before someone else buys them.

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I can remember one man being very reluctant to move out of a prestigious London address.

I bet when he moved out, it was as if the weight of the world dropped off his shoulders.

I bet within a couple of months he looks 10 years younger. He was never up to the job and now he knows it.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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