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Post election news

May 14th 2015
By: Mary.Wilkins

Following the election result, the property market looks set to rise again after the period of stagnation.  The top end of the market has seen a flurry of activity now that Labour’s mansion tax is not on the agenda. 
 
Labour’s 1970s style rent cap is also off the table, together with their plans for three year tenancy agreements which would have led to onerous regulations for the industry.  The Conservative party tend to be less interventionist than Labour and are unlikely to intervene in the housing market – in particular with the private rental market.
 
During April, house prices rose despite the political uncertainty ahead of the general election which had seen a slow down in demand. The tighter lending conditions added to the reasons for the reduction in momentum.  Nevertheless, rising employment, low mortgage rates and economic improvement have all kept the market buoyant. 
 
New figures from the Halifax have showed that the annual growth rate has increased from 8.5 % for the year preceeding April, which is up from 8.1% on the previous month of March. The annual growth rate is the most important indicator for the direction of the housing market.
 
The relaxation of pension rules mean that more and more people are looking to invest in buy to let opportunities. There is an overwhelming need to build more houses in the UK which offer more opportunities for landlords to purchase new properties for investment.  The new homes will have NHBC guarantees meaning landlords and their tenants have less to worry about.  If you wish to register an interest, please contact our Land and New Homes team based in Leatherhead on 020 8652 2929.