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Conservative Party Leadership: What this means for Property Investors
May 8, 2015Article by Clare Moorhouse
So there we have it. The votes have been counted and we can finally lay our general election jitters aside. The Conservatives are in. The general election has undoubtedly raised concerns about the overall economy and the UK housing market in general, and those with a vested interest will be keen to find out how the Conservative Party Manifesto will affect you as a landlord.
We’ve rounded up the policies that we believe will have the biggest impact on you as a property investor, as well as the UK housing market in general:
Continuing economic stability
Confidence and stability result in a buoyant economy and this will have a huge impact on the UK property market. The Conservative party remaining in power is excellent news for landlords. We believe the rental market is likely to strengthen, fuelled by strong tenant demand and no market meddling, thereby leaving investors in a strong position.
UK house prices
According to Zoopla, property prices have risen 9.7 per cent on average across the country over the past five years under the Conservatives, largely due to an improving economy, higher employment and policies designed to further engage property ownership and investment. As such, allowing the Conservatives to finish what they started is likely to result in the continued recovery of the UK housing market.
Low mortgage rates
The Conservative Party Manifesto pledges to keep mortgage rates low by continuing to work through their long term economic plan – providing longer term financial certainty for investors.
For nearly three decades, the supply of housing – both private and public – has fallen well short of the level needed to match predicted increases in demand. The Conservatives are championing home ownership and property owning democracy through new policies, by planning to build 200,000 starter homes for first-time buyers by 2020, more garden cities and a further 400,000 new units from brownfield land.
The Help to Buy scheme, aimed at first time buyers, will also help stimulate demand for new build homes.
Other factors including increasing the higher income tax threshold from £42,385 to £50,000 and stable interest rates will free up more disposable income for investors.
As with any general election, promises and pledges don’t always turn into government policy, but now that we have more certainty, we’re expecting a buying surge from investors looking to take advantage of the post-election turmoil.
For more information about what the Conservative housing policies mean to you as an investor and to find out what UK properties are appealing to buy-to-let investors, contact one of our Investment Consultants on +44 1865 202 700.