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General Election sees demand for property skyrocket

6th Jun 24 12:55 pm

UK-wide property conveyancing firm, Thomas Legal, has said its enquiry levels have risen by 20% since the General Election was announced.

Meanwhile, analysis of historical Bank of England data by Investing Insiders shows that, since 1992, seasonally-adjusted mortgage approvals have risen seven times out of eight in the month leading up to a General Election compared to the month before by a median average of 3.8%.

The data also shows that approvals have risen at a median average rate of 4.4% in the three months after seven of the last eight General Elections.

Newspage asked experts in the mortgage and property market whether they’re seeing demand soar. Many are. One said: “General Election run-ups usually see buyers batten down the hatches but this one has seen demand from house hunters go ballistic.”

Chris Barry, director at Thomas Legal said, “The General Election 2024 has seen demand go through the roof.

“Since the election was announced, our enquiry levels are up by 20%. Given that house prices remain at dizzy heights and interest rates are at their highest level since 2007, this doesn’t quite stack up.

“We suspect the reason is partly pent-up demand and partly the growing desire among tenants to escape the rental market, where rents are increasingly astronomical.

“Perhaps the uncertainty in politics has made first-time buyers want the certainty of homeownership more than ever.”

John Choong, senior equity research analyst at Investing Insiders said, “Our analysis of Bank of England data shows that, since 1992, seasonally-adjusted approvals have risen seven times out of eight in the month leading up to a General Election compared to the month before by a median average of 3.8%.

“The data also shows that approvals have risen at a median average rate of 4.4% in the three months after seven of the last eight General Elections.

“And even though you could argue that part of this was due to lower rates after the Global Financial Crisis in 2008, it’s worth noting that approvals still went up in the three months after the 1997, 2001, and 2005 elections when mortgage rates were significantly higher than today.”

Michelle Lawson, dorector at Lawson Financial said, “The downpour that submerged the Prime Minister as he announced the General Election has left us flooded with mortgage enquiries.

“Why this has happened is hard to know but perhaps buyers see the increased uncertainty as a shrewd time to negotiate on price.”

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