Political unrest is the last thing the current UK housing market wants to deal with. But after last weekend’s general election ended with a hung parliament, that potential predicament facing homeowners is now a reality. Will the stagnant market be able to survive through this critical period in UK history?
Over the last few decades, the housing market has mirrored actions of the local government. So, with the government currently stalling, the housing market is likely to do the same. Property sales are likely to halt, meaning owners are more prone to wait out the political tension before putting their homes on the market. Homeowners that are content with their current situation will not be hit as hard as those looking to make a transaction.
The solution for buyers and sellers in today’s marketplace could be quite simple – stay put. Locals say that it is best to not get involved with the housing market at all while the government works through internal turmoil. The hope is that individuals waiting to purchase property may be able to save more money and positively impact the market when finally ready to buy.
Last weekend’s hung parliament (no winning party) was only the third in the UK’s history. The prior instances occurred in 1974 and 2010. The government’s future now relies on the party with the most seats. They can choose to rule as a minority or form a coalition of leaders. Prime Minister Theresa May has been rumored to lean towards the former this time around. Some homeowners may be rooting for both options to fall through, hoping for a fresh election.
There is some good news for homeowners though. Experts predict the results of the general election will not have any major long-term effects on the housing market. Many believe people are overreacting to the results as well; sighting little fluctuation in the market over the past six months. Transactions that are currently underway are also unlikely to be effected. With a quick fix to the government, the housing market can remain unharmed.