Is the general election affecting your business?
Have you seen a drop off in customers over the past couple of months, particularly from first-time buyers?
This year lenders have been more willing to work with buyers offering less than a 10% deposit – however with uncertainty about what will happen after 7th May, it appears that first-time buyers are wanting to err on the side of caution.
Although the overall trends appears to show growth in the market, the number of high LTV approvals – typical of first-time buyers – dropped by 10.5% from February to March.*
Typically we’d expect Spring to be buzzing with seasonal house buying and selling activity but historically the market always tends to be more subdued before a general election.
With the 2015 vote likely to be one of the most uncertain in decades this has certainly triggered more hesitation than normal as buyers wait to find out what the next government has in store before making that big commitment to buy.
How will the outcome of the election affect the market?
Whichever party comes into power post-election, there shouldn’t be too much of a negative impact on the market and confidence will pick up over time.
If the conservatives win power, this should retain the status quo and the market is likely to pick up fairly quickly.
If Labour win, this may slow things down slightly as a new political agenda comes into play and a new budget is likely to be announced.
This may well bring further opportunities for home buyers, however whilst buyers wait for announcement it will delay confidence in the market, although this should only be a short term interruption.
Most people are expecting some form of coalition government which, depending on the actual partnership could bring about some shock changes.
However with tensions currently running high between all parties, no one is quite sure how this will play out and what effect this would have on the economy. Whatever the outcome we are all waiting with baited breath to see how it’s going to affect the property market and in turn the mortgage business.
Is the election affecting your business? What do you expect to happen after 7th May? What would your preferred outcome be?
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