The ‘calm after the storm’ will see the market settle

Martin Bikhit, MD of Kay & Co

“With the Conservative party forming a government with the DUP and operating under a minority arrangement, political uncertainty will continue in the coming weeks and months ahead, particularly as Theresa May is being pressurised to resign. There are many questions which have arisen, including whether the UK will now negotiate a hard Brexit and which housing policies will be pursued under this new ‘confidence and supply’ arrangement with the DUP."

“We anticipate that the Conservative pledge to build a million new homes by the end of 2020, with an extra 50,000 by the end of 2022 will remain a focus for the government. House-building targets like this have proved notoriously hard to meet in the past, but the government plans to facilitate more building on brown land and to work with local councils to draw up schemes for more social housing. Social housing tenants who have lived in their properties for a certain length of time will be given the right to buy their homes, with the money raised re-invested in additional housing. Hopefully, measures like this will help get more young people on the housing ladder."

“We would also like to see a reform on Stamp Duty as it is an important measure to ensure the increase in transactions and sales in London. George Osbourne’s measures have resulted in a drop in transactions and a significant reduction in supply, which is good for no one. At £2,000,000, the price of a two bedroom apartment in Central London means that the buyer pays up to £213,750 in stamp duty. This is making people think twice about moving stopping ‘second steppers’ to move up the ladder, making way for first-time buyers."

“For the London property market, we are expecting there to be a period of instability as the new government sets out its plans for the future of the UK but expect that the ‘calm after the storm’ will see the market settle.”

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