How will the General Election impact the UK property market?

It’s a confusing time for buyers and sellers in the property market with the traditionally active spring period being disrupted by the imminent General Election. It’s difficult to know what to do but advice and warnings should be heeded on both sides of the market.

Traditionally spring has been a period of huge sales in the UK because with the winter now over many people see this as an opportunity for a fresh start in their lives and not just in the weather. Around 25% of yearly house transactions happen during the spring period in the UK but this buoyant trend might not continue this year due to the disruption and uncertainty caused by the General Election. Often people do not buy houses in the run up to the election because the future government is unclear and in 2010 this is particularly relevant. There are currently no indications as to a clear winner but whichever party does take government could have a dramatic effect on the house market.

Although Labour has been in charge for over 13 years, this year the Conservative Party are holding a strong challenge and in the past, statistics have shown that in the aftermath of a successful Conservative election property market activity has increased dramatically. This is due to the fact that a rise in Conservative votes is often linked with a greater confidence in personal prosperity. In 1979 and 1992 when the Conservatives had significant victories in the General Election, the three months afterwards saw plenty of buying and selling and if the same happens this year it could have an interesting effect on the market.

With the springtime boom unlikely to occur and so much uncertainty in the air it seems that sellers are in an awkward situation whilst buyers who want to risk buying before the result of the election could be in a good position to find a bargain. Acting ruthlessly could help potential buyers find the house of their dreams and for a great price. This can be done by finding out how desperate the sellers are and if they need to sell before the election.

Alternatively, some experts believe there could be a house market dip just after the election and if this were to occur then it would be best to sell now or buy after the election.