What Does The Tory Victory Mean For You?
3 minute read
Last week’s election heralded a large surprise for everyone involved in the process, including voters, pundits and party leaders. The possibility of a hung parliament had seemed like somewhat of an inevitability going into Thursday’s vote, but Friday morning left everyone surprised, with the Conservatives emerging as comprehensive victors, claiming a majority vote. The victory came under intense scrutiny immediately, with disgruntled and delighted voters alike taking to social media to express their opinions within minutes of confirmation, and the national newspapers all taking their own individual stance on the next five years of government. But what does the victory mean for the Mortgage market?
Houses Prices Will Rise
House prices have been on an upwards curve for the past five years, reaching record highs. This trend looks to continue, particularly in London as the Conservative party takes full control of the country’s government. This rise in house prices has clearly highlighted to government the need for more properties to be built to meet the demand that is pushing prices ever higher. It would appear that the Conservative government have heard the need, pledging to build 200,000 houses this year for first time buyers as well as creating a £1 billion brownfield regeneration fund creating sites for 400,000 homes.
Mortgage Rates Will Fall
A fall in mortgage rates certainly looks like a possible response to the Conservative government claiming a majority win. Mortgage and base rates are both currently sitting at record lows but industry experts seem to be of the consensus that the Conservative’s plans to continue fiscal austerity could see rates continue to drop.
Buyers Receive More Support
The overwhelming message of the Conservative victory seems to be that buyers of all levels will be given greater support than they previously have, promising to expand Right to Buy to 1.3 million housing association tenants. The Conservatives have also promised to introduce a Help to Buy Isa to help borrowers save for a deposit. Carl Shave of Just Mortgage Brokers said, “The ongoing support from the Conservatives within the housing market is welcomed. Many buyers have already benefitted from the existing schemes such as Help to Buy, and with the focus remaining it will hopefully give the positive signals to would be buyers that owning your own home is an achievable target and not just something for the more affluent minority. The short term outlook is therefore one of a positive note with the view that the longer term management, if dealt with correctly, should mean a more stable market for house prices and continued steady growth in home ownership.” To discuss your mortgage needs, get in contact with the Just team today.