As we approach the upcoming election, the housing market is showing signs of steadiness. According to a recent article by Rightmove, house prices have remained near last month’s record high, with the average asking price of a home falling by just £21 since May, now standing at £375,110.
A Look Back at Recent Trends
Last month, Rightmove announced that house prices reached a new record after gradually increasing each month since the beginning of the year. This growth has been primarily driven by an influx of top-of-the-ladder homes hitting the market, including properties with five or more bedrooms and four-bed detached houses.
However, history and experience in our local property market, and according to Rightmove across the rest of the UK, shows that as we head into June house prices tend to remain flat. This is partly because people start focusing on holidays, and this year, a busy summer of sports and the upcoming general election adds to the trend.
Election Impact on the Housing Market
Rightmove’s recent survey revealed that 95% of respondents said the July election wouldn’t affect their moving plans and that they intend to proceed as planned. Reflecting on this, Rightmove’s property expert Tim Bannister notes, “It’s always difficult to predict how home-movers will react to sudden uncertainty, but looking back through our data, we can see that during previous election campaigns, market activity has remained largely steady. This election has followed a similar pattern so far, and the responses from our poll of over 14,000 people also support the data, with the vast majority of respondents saying they will carry on with their home-moving plans.”
Since the election announcement, Rightmove say the number of sales agreed has remained steady, currently up 6% compared to the same period last year and unchanged since the election was called. We are certainly still seeing property sales in our area continue at a slow and steady pace in line with the rest of the market.
What About New Listings?
Rightmove say there has been a noticeable decline in the number of new listings this month. With less than two weeks to polling day, Rightmove say many potential sellers are waiting to see how the election could play out. In the two weeks before the election announcement, Rightmove say new sellers were up by 6%. However, Rightmove say this has decreased to 1% in the past two weeks as would-be sellers, especially those with top-of-the-ladder homes, hold off until July 4.
Tim Bannister from Rightmove explains, “Some potential sellers appear to be watching and waiting rather than taking action, evidenced by a dip in the number of new sellers coming to market, particularly at the top-end. This is understandable when many of these sellers have more flexibility over when they act, but overall, it appears to be business as usual for the mass-market.”
In Summary
As we move closer to the election, Rightmove share that the housing market remains stable with house prices holding near record highs. While there is a slight dip in new listings as sellers await the election results, the overall market activity remains strong. For those looking to buy or sell, it appears to be business as usual, with the vast majority of people planning to move forward with their plans regardless of the political climate.
This blog is based on an article by Rightmove. Stay tuned for more updates and insights on the housing market as we navigate through this election period.
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