The 2019 general election may feel like a long time ago now, but it’s fair to say that the property market is still feeling the positive effects from when the Conservatives celebrated their landslide victory back in December. It was only a matter of days after the country went to the polls that activity in the residential market started to surge, with both house prices and buyer enquiries seeing considerable increases. The large amount of movement in the market has also boosted activity in property development and the sector is set for a productive year.
According to the latest residential report by the Royal Institute of Chartered Surveyors (RICS), estate agents saw a 17 per cent increase of buyer inquiries after the election took place – which was a considerable increase compared to the five per cent drop in enquiries in November. On top of this, the RICS also found that the number sales agreed had risen by nine per cent – again this an impressive increase from the previous month, where sales agreed dropped by six per cent. The election also caused a boost in people putting their property on the market. According to respondents to the RICS, the number of instructions had increased by nine per cent from the previous month.
The activity in the housing market and falling housing supply in the country is also creating the perfect opportunity for property developers across the country. Following the general election, the RICS reported a growth in land value alongside the increase in buyer enquiries, with the East Midlands and East of England seeing the strongest increase in land value. Developers are now using the active market to start planning new projects. According to the Essex-based building society, Saffron Building Society, there has been an increase in property developers making enquiries to finance their latest projects. Peter Owen, head of property development at Saffron Building Society, said: “We have started to notice the upturn at Saffron Building Society. Our partners have told us that developers are starting to feel more confident, which over the coming weeks and months will hopefully lead to an increase in lending applications, as buyers take advantage of the improving conditions.”
In addition to this, the RICS reported that the construction industry has also seen a boost in workload since the election. According to their UK Construction and Infrastructure Market Survey, workloads in the construction industry is expected to increase by 50 per cent in the coming months – this is a 23 per cent increase from the previous quarter. Although the market still isn’t quite as strong as they were before the EU referendum, it still indicates that the market is heading in the right direction. The residential market is also expected to be the most resilient over the next 12 months, with 34 per cent of surveyors reporting an increase in house-building workloads over the next year.
The activity in the residential property market is excellent news for both property developer and investors and they should be making most of it while it lasts.
Are you looking to invest? Take a look at our latest projects.