The prospect of a general election has minimal impact on the property market, according to a new report released by global property firm CBRE. It is commonly reported that the property market slows in the run up to a general election as property purchasers and sellers delay their decisions until the outcome of the election is clear.

But contrary to the opinions of many experts, CBRE says that the correlation between property related decisions and the timing of a general election is negligible.

In the last 30 years, there have been six general elections, all of which took place in the second quarter of the year.

CBRE says that there is no discernible negative impact at a national level in the residential sector on either the mortgage market or house prices in the three months either side of the past six general elections.

For example in 2010, the year of the last general election, the firm found that house prices in May (the month of the election) were higher than in April and lower than June as prices continued a growing trend.

That said the firm points out that the run up to this year’s election – which takes place on May 6th – could see a dampening of the prime residential market in response to plans from both the Labour and Liberal Democrat parties for a mansion tax – an annual tax which will levy additional fees on owners of properties worth over £2m.

However this is unlikely to have a profound impact on the UK market as a whole, as only 2% of sales are worth over £2million.

“Conventional wisdom suggests that property markets slow as a general election approaches. Elections are uncertain, with the forthcoming election more uncertain than most. However, the data shows that the property market is actually very resilient in the run-up to an election, with little observable change to the overall behaviour of the market, except where a detailed policy has already been proposed, such as the ‘mansion tax’,” commented Miles Gibson, CBRE’s Head of UK Research.

“There is little, if any, evidence of UK general elections having any overall impact on property investors or occupiers, the pace of planning decisions, or house prices. This may be because Party manifesto policies on property are typically very general and, where they are specific, they take time to be implemented,” he added.

Adam McHenry, from Cadman Homes, a family owned and run estate agents in Rugby agrees. The Castle Street based firm are seeing very strong demand from potential buyers and tenants of property in Rugby.
They are currently looking for sellers of property accross Hillmorton, Bilton, Dunchurch and the Town Centre to fulfill demand from a growing list of buyers.

If you know someone who is looking to sell or let a property in the Rugby area, then contact Cadman Homes today to see what offers and incentives are available.

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