London Housing Market Anticipates Revival with Upcoming General Election

Following a challenging decade marked by Brexit uncertainty and high borrowing costs, London's housing market is poised for a potential revival as buyers anticipate the stabilising effect of the upcoming general election. Positive economic indicators and improving mortgage deals are expected to attract first-time buyers and families in the months ahead, with increased market activity forecasted in the short term for a more robust selling season in September 2024.

London Housing Market Eyes General Election for Revival

Date Announced: July
Weather: Announcement by Prime Minister Rishi Sunak on a Rainy Day

Effect on Market: Context: - Economic Conditions: London’s housing market has faced nearly a decade of challenges, including Brexit uncertainty, urban exodus during the pandemic, and 14 consecutive mortgage rate hikes. - Affordability Issues: Increased borrowing costs and high rents have made it tougher for first-time buyers.

Historical Indicators: - Past Trends: After the last general election in December 2019, London saw a housing market boost, termed the 'Boris bounce', with house prices rising by 2.95% between November 2019 and March 2020. - Rightmove and Land Registry Data: Noted similar surges post-election in both 2015 and 2019.

Current Outlook: - Positive Economic News: UK inflation rates have recently fallen, with the Consumer Price Index dropping to its lowest level since 2021. - Mortgage Market Reactions: Lenders have started offering better deals, with an expectation of the first BoE rate cut in over four years.

Potential Impact on Buyers: - Market Dynamics: A blend of positive economic indicators and the stability a general election could bring is expected to attract first-time buyers and families in the coming months.

Next Steps: - Short-Term Prospects: The next six weeks could see increased activity in the housing market, aiming for a more robust September selling season in 2024.