Similarly, Rightmove announced this morning that the unexpected outcome of a majority government should "release the brakes on buyer confidence and activity".
In the three months after the May 2010 election there was a 17% jump in the number of properties coming to market compared to the previous quarter. With a majority government in power, early indications from estate agents suggest that the next quarter could see another surge in property coming to market.
DeVere’s Head of UK Financial Planning, Kevin White, affirms:
“Since the election outcome was announced our mortgage consultants have reported a noticeable surge in serious home loan enquiries.
“Demand for mortgages has been strong all year, but the volume of enquiries has increased by more than 50 per cent over the last seven days, compared to the previous week.
“The majority of these enquiries were from overseas buyers and British expats who want to purchase a UK property but who had been, for various reasons, waiting to see the outcome of the election before pursuing.”
Tom Elliott, International Investment Strategist at DeVere Group, added:
“It is to be expected that there was a significant uptick in mortgage enquiries in light of the Conservative win. It appears that investors held off in fear of a left wing government taking power.
“The UK property market should benefit from David Cameron’s government. There will be no Mansion Tax, and indeed property will be slightly less taxed if the Conservatives carry out their promise to exclude property under a certain value from inheritance tax.
“More generally, the election result has confirmed that Britain remain a pro-business, pro-property owning country backed up by a robust legal framework. The statist alternative, proposed by the Labour party, that would have led to more government intervention in the economy has been revealed to have little popular support.
“Additionally, the non-dom tax status will continue to be available to wealthy foreigners, even if it is further modified. This will continue to encourage inward investment and spending in the UK, particularly in property.
“The likelihood of continuing very low interest rates –supported by this week’s Bank of England inflation report- will also fuel demand.”
