A post-election boost in the housing market has yet to materialise following Labour’s landslide victory, according to the latest property market insight from GetAgent.
The comparison site’s survey of nearly 1,000 UK estate agents revealed that only 19% have noticed an increase in market activity since the election.
While 56% of agents believe the election result will eventually benefit the housing market, immediate changes have been minimal. The survey results indicate that overall market sentiment and activity remain largely unchanged in the short term.
Looking ahead, agents are more hopeful. Nearly two-thirds (63%) of those surveyed by GetAgent anticipate an uplift in market activity over the coming months.
However, persistent high interest rates and mortgage costs continue to constrain buyer purchasing power. Consequently, only 42% of agents expect this increase in market activity to lead to significant house price growth.
Among Labour’s proposed housing market initiatives, agents identified several key measures they believe will shape the market going forward.
The initiative to give first-time buyers the ability to purchase new homes before investors was deemed the most influential. Other significant measures include reforming the planning system, targeting the construction of 1.5 million new homes, and making leasehold reforms more transparent and affordable.
Colby Short, co-founder and CEO of GetAgent, said: “Recent mortgage approval and house price data all very much point to a housing market that is on the up, but one that continues to be somewhat stifled when it comes to the level of market activity and the rate growth being seen.
“The election result doesn’t seem to have been a floodgate moment in this respect and while many agents believe the result to be a positive one, it’s likely to be a cut to interest rates that really revitalises the market.
“The good news is that this seems very much on the horizon and preparation is key when it comes to setting the foundations required to capitalise on such a surge in market activity, both with respect to the available stock on an agent’s books and the suitable resources in place to cope with the increase in workload.”