Post-election boost for London housing market as 'mansion tax' sinks without trace

London's housing market is set to soar following the Conservative election victory, putting an end to months of pre-ballot jitters, say experts.
Property analysts predict an immediate price uplift with the conclusive poll result helping to restore market confidence among both buyers and sellers. 

"We expect that would-be sellers who had adopted a 'wait and see' approach will now bring more stock to the market," says Lucian Cook, head of residential research at Savills UK.

Potential buyers dreading the arrival of Labour's so-called 'mansion tax' on homes worth £2 million-plus have begun house-hunting again.

Estate agent Hamptons International doubled its London-based registrations over the post-election weekend in comparison to the previous week. "There was a threefold increase of instructions above the £2 million-plus price bracket across London and the South-East versus the week prior to the election," says Johnny Morris, Head of Research.

Jonathan Hudson, director at Hudsons, comments: “Hudsons had a number of offers pending the result of this election and we have been busy agreeing these deals since Friday when the result was confirmed. With mansion tax fears put aside we expect a significant number of new listings in the coming weeks and it is now certain that the London market will remain strong."

NEW LONDON SALES LISTINGS POST-ELECTION: £2 MILLION-PLUS HOMES

 


First-time buyers welcomed the introduction of new ways to get them on to the property ladder. The new Conservative government says it is committed to building more new homes using brownfield land, and increasing the number of affordable homes for sale. Up to 200,000 new homes could be offered at a 20 per cent discount to first-time buyers aged under 40.

New Help-to-Buy ISAs are intended to help young buyers save for a deposit via a "bonus" scheme, where for every £200 saved for a first house, the Government adds a top-up of £50. The maximum amount the Government will contribute is £3,000, so a total of £12,000 would need to be saved.

The post-election feel-good stability factor is predicted to spread beyond the capital, with house prices tipped for significant growth in the South-East region. "Improvements in the London market are likely to trigger a renewed ripple effect, as those relocating from London find it easier to sell their existing home and take advantage of the price differentials with the rest of the country," says Savills' Lucian Cook.


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