What can Southampton Buyers and Sellers Expect From a New Labour Government?

Manns and Manns - Property Update July 2024

Following many weeks of campaigning, we now have new occupants of 10 Downing Street following Labour’s landslide victory.

Whether you are pleased, disappointed or indifferent, the fact the general election is now concluded should prove to be positive news for the property market. Broadly speaking, property markets historically improve after elections as buyers and sellers alike have an aversion to uncertainty. We now have a clearer understanding of what the government is aiming to implement and achieve over the next five years.

Labour has pledged to “Get Britain building again” promising to build 1.5 million new homes during the next parliament. They are proposing to strengthen housing targets and reform the planning system by introducing a so-called ‘grey belt’. Labour plans to increase the supply of both social and affordable housing, they also plan to introduce a permanent mortgage guarantee scheme for first-time buyers allowing them to purchase with a smaller deposit. No further stamp duty exemptions have been proposed for first-time buyers; however, Labour has announced they do not plan to increase income tax, national insurance, or VAT. As to whether we will find ourselves with more or less money in our pockets remains to be seen… we will eagerly await the new Chancellor’s first budget.

Interest rates remain at a 16 year high in an attempt to further slow and stabilise the rate of inflation. It had been rumoured that a cut in interest rates could be imminent triggering a number of lenders to reduce their mortgage rates. Recent news articles suggest that the Bank of England may now hold the base rate at its current level of 5.25% due to strain within the labour market. The Bank of England meets again on 1st August 2024 when a decision will be made.

Here at Manns & Manns we are keen to ensure our clients are able to take advantage of the best available mortgage deals. We are therefore thrilled to announce that we have teamed up with My Choice Mortgage Ltd who now offer in branch appointments for clients to discuss their borrowing requirements. Call us or pop into branch to arrange your appointment.

Following last weeks election result we have seen a noticeable uplift in both viewing and valuation enquiries indicating that confidence is returning to the market. Whether you are thinking of buying, selling or both, we are confident that our highly knowledgeable and friendly team will be able to help you with your journey.

Call Manns and Manns today on 02380 404055 to arrange your free, no obligation valuation, register your details on our comprehensive property database or arrange a viewing of one or more of the delightful properties we have listed for sale.

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