Last night, the UK general election result demonstrated a massive, landslide victory for the Conservative party and Boris Johnson. The tories delivered a huge blow to Labour who suffered a devastating loss, the worse loss in over fifty years! And, at Harry Albert Lettings & Estates, we couldn’t be happier with the result. Can you imagine a Corbyn government on your investment portfolio?
How does Boris Johnson affect7 Money Saving Tax Tips for Landlords house prices?
House prices typically demonstrate modest growth in the run-up to and after general elections and are largely down to how the current prime minister and the leaders of opposing party view the UK housing market, particularly considering the private rented sector. The liberal parties tend to want to take property away from those who worked hard, to give it away freely to those who did not.
In Leicester, for example, Oadby and Wigston Council have routinely lied to residents, landlords and tenants in their ward in order to force through Selective Licensing proposals, which, after numerous freedom of information requests, were found to be false and therefore, unlawful. In doing so, we expect a short-term negative impact on house prices in affected areas whilst rents will skyrocket to cover the excessive cost applied to landlords.
Each political party leaders’ plans can have an impact on rents and house prices, depending on public sentiment and popularity of each party. I think we’re all surprised labour did not perform much better with all the student, young people and naive person’s support they achieved.
In the May 2015 election, the UK saw an average of 1% growth in property values, whilst the 2017 elections saw house prices rally 1.3% following Theresa May’s victory.
However, the real story isn’t quite obvious until at least 6months after the election result has been announced and, taking into consideration the increase of 4.5% over 6months from May 2015 and 3.6% from June 2017, it is expected we will see an even high post-election house price increase.
Should I invest in more properties?
Absolutely. If previous elections are anything to go by, it’s a resounding yes! Even with the uncertainty of Brexit, it will be stupid to wait and miss out on a great deal. We expect modest growth throughout 2019 and 2020 with this growth accelerating as the dust settles post-Brexit.
Buy a Below Market Value Property Now
If you’re thinking of buying, there’s no better time to act. Call us today to discuss our buy to let opportunities in one of the UK’s top investment hotspots, Leicester. Call us now on 0116 321 4970.