General election unlikely to halt property market momentum

UK property developers

According to a fresh analysis of Gov house price data by eXp UK, an election is not likely to hurt house prices in the longer term

This July’s election is unlikely to halt the positive property market momentum that has been building in recent months, according to a research.

According to a fresh analysis of Gov house price data by eXp UK, an election is not likely to hurt house prices in the longer term.

eXp UK evaluated the annual rate of house price growth in the year following the last 10 general elections stretching back to 1983, adjusting for inflation to give a clear view of market performance.

The research found that home sellers have little to worry about when it comes to an election-induced house price dip, with the average house price rising by 5.4% on average following a general election.

In fact, house prices have risen in the year following every general election since 1983 with the exception of two, 1992 and 2010, when the market was still in recovery during these periods after the early 1990s recession (technical recession ending Q3 1991) and the 2008-09 financial crisis (technical recession ending Q2 2009).

The evaluation by eXp UK shows that whichever party takes power this time around, the market is likely to stand firm. Following the election of a Conservative PM over the past 10 elections, house prices have jumped by 4.6% on average, whilst this growth jumps to 10.9% in years following the election of a Labour PM.

The head of eXp UK, Adam Day, said: Political uncertainty can be poisonous for the property market and we saw how years of back and forth over Brexit slowly put the market into a state of deepfreeze.

He added: However, a general election is not likely to have the same impact and is often viewed by many as a time of opportunity and change, with historic figures showing that the housing market marches on regardless in the year that follows.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

getting money wise

Welcome! Get your FREE access to EVERYTHING we publish…

Our goal is to show anyone how to make investing profitable. You’ll get our FREE weekly newsletter with latest news and information on investment topics along with special offers. Please take time to read our privacy policy . The information you provide us will be processed in accordance with this.