Member Article

‘Palpable sense of relief’ among South East property experts following Conservative victory

Following Friday’s shock Conservative Victory, David Cameron has now settled back into Number 10, supported by the first all-Tory cabinet in 18 years.

Last month, we spoke to businesses in Kent, Surrey, Sussex and London about their hopes, expectations and opinions on the election, with particular focus on the property sector - a hot topic in London and the South East.

In the Conservative Manifesto, Cameron promised to extend the Right to Buy Scheme to housing association tenants in England. He also pledged to build 200,000 starter homes in an attempt to help first-time buyers get on the property ladder. Property agencies we spoke to last month were keen to see the Conservatives see through their house proposals, and this positivity remains.

We returned to the South East business community in search of reactions and revelations after Friday’s turn of events.

Edward Heaton of London-based property search agency, Heaton and Partners expects the demand for housing in surrounding counties will continue to rise:

“As a result of this year’s General Election I expect that prime country house prices could rise by as much as 10% within weeks. There will be bun fights in the next few weeks for the best houses which come to the market as confidence in the top-end of the regional market returns. For many operating in the prime property market, there is a palpable sense of relief at the Election outcome as there were some genuine concerns about the possible impact of Mansion Tax tied in with the attack on non-doms proposed by Labour.“

Nick Leeming, chairman of Jackson-Stops & Staff, which is headquartered in the capital, believes the Tory’s outright victory can only be a good thing for the city’s property market:

“With the Conservatives looking set to win majority, the clouds that have hung over the London property market have now dispersed. Having seen the number of property transactions slow down sharply over the last six months, as the prospect of mansion tax loomed on the horizon, with today’s result, we expect to see greater activity in the London market from now on.

“High valued properties, whilst still affected by some of the more recent tax changes, should see more stable demand and the resurgence of international interest. Now that London is open for business again we expect the wider markets to respond accordingly.“

Glynis Frew, managing director of Hunters Property Group, also believes the Tory majority will be beneficial to London’s housing market:

“We welcome a Conservative victory as this will bring some much needed stability to the property market, and from stability comes growth. We look forward to seeing the extension of Right to Buy to 1.3m housing association homes in England, and more importantly, the introduction of 200,000 starter homes by 2020. We anticipate this will have a massive impact on the market. What’s more, The Government’s Stamp Duty reforms announced in December last year have already had a positive effect on the housing market, so we are pleased this will stay in place.“

“In terms of lettings, although the threat to ban tenant fees by Labour was intended to assist tenants the reality is it would have had a detrimental effect on not just the service tenants could have expected on application but also in longer term. There are many pieces of legislation already in existence to halt rogue agents and landlords and we should ensure these are actioned before we introduce more legislation; there is more than enough already and we hope the Tories keep this in mind before introducing anything further“.

“As a company we are always delighted when one of our own is successful and naturally we are all very pleased for Kevin’s success in being elected as MP in his home constituency of Thirsk and Malton.“

Robert Bartlett, Group CEO of Chestertons, the London estate agency believes the Conservatives will support the continued growth of the property market in the south East in a way their competitors wouldn’t:

“No one predicted such a clear-cut result, and with some form of coalition looking the most likely outcome before the country went to the polls, trying to predict which policies would be implemented was proving beyond political pundits and property market commentators alike, so homeowners and landlords can be forgiven for feeling in the dark as to which way to jump.

“Labour and Lib-Dems both backed the introduction of a Mansion Tax on homes worth more than

£2 million, which would have disproportionally penalised Londoners, especially those with outstanding mortgages or those in retirement who had prudently invested in property as a nest egg. As a result, many people were holding their breath and waiting before making a decision to buy or sell.

“Likewise, Labour’s proposed new laws for the private rented sector would have seen compulsory registration schemes, direct rent controls, fixed-term tenancies and added overheads for private landlords shortening the supply of decent rented homes and ultimately pushing up rents.

“With these proposals off the table, and the spectre of political uncertainty finally lifted, we can now all move on. We are already predicting the next few weeks and months will be very busy indeed.

“There are still issues to be addressed in the property sector in London, not least the need to boost housing supply, make the rental market more transparent and accessible, and unlocking opportunities for regeneration through a joined-up approach to planning and infrastructure delivery. We hope the new Government will continue to work with the property sector and consult properly on proposed changes so together we ensure that any new policies will work as they are intended and can help deliver the long-term sustainable growth and sensible innovations that our industry requires.“

This was posted in Bdaily's Members' News section by Ellen Forster .