There’s little evidence that home buying and selling slows before a general election. The number of sales agreed in the three months preceding the vote typically increases by 7% compared to the previous year, with a higher proportion of yearly sales occurring in this period. This trend isn’t driven by anticipation of political change, as post-election sales also see a rise of about 6%.
However, this pre-election surge isn’t observed in the prime property market (homes priced at £2m and above). Sales in this bracket decrease by 5-6% in the three months before an election but tend to bounce back by 12% afterwards.
Yet, for most markets, general elections don’t significantly affect buying or selling decisions. Election outcomes generally align with pre-voting polls, fostering optimism among households. Although some buyers may hold off, they’re outweighed by new entrants attracted by a strengthening economy, causing a slight decrease in rental market activity.
Looking ahead, the upcoming election is expected to follow similar patterns. Governments tend to delay elections to coincide with positive economic trends, such as a growing economy and lower interest rates. Cheaper mortgage rates and a drop in interest rates are anticipated, countering any concerns about potential political changes.
[Figures in this section were taken from Hamptons.]
Discover More: Stay informed about property investment with some handy articles. Read our guide on the meaning of freehold tenure, or check out our page on new-build properties in Liverpool.