Prime Minister Rishi Sunak yesterday (22/5) somewhat unexpectedly announced that a general election would be held on 4 July.
Here’s how the housing industry has reacted to the news.
Adam Lawrence, chief executive of developer London Square, said: “We have been in limbo for so long. We welcome clarity. It will be good for the housing sector and business generally. We need a new government now with a clear mandate to drive the UK forward.”
Rayna Hunter, CEO of LH1 Global, commented: “It appears Rishi Sunak is calling an election now to capitalise on the news that inflation has stabilised, and the general thought process is that interest rates are going to be reduced as a result. However, this is still quite a gamble, especially after the results at the local elections held across the UK recently.”
“From our perspective, the property industry wants positive energy injected into the market to deliver more homes, with more affordable options for first-time buyers to ensure the start of the property ladder can be catered for, which then resonates further up the chain.”
“The construction and property industries are key factors and contributors to the economy, and it is important any government supports the industry and gives it proper care and attention. We must also ensure the government continues to encourage landlords to buy properties to provide much-needed rental accommodation and alternative housing options for those who cannot afford to buy. So, there is a lot to do for the successful party come close of play on 4 July.”
“In the meantime, I would always propose buyers speed up their pending purchases ahead of the election as we cannot predict the knock-on effect afterwards.”
David Thomas, chief executive of Barratt Developments plc, said: “It is clear that the housing crisis will be front and centre in this election campaign and we look forward to seeing positive policies from all parties aimed at increasing housebuilding, supporting people onto the property ladder and helping the industry to build strong sustainable communities.”
Edward Heaton, founder of buying agency Heaton and Partners comments: “We’d expected a short selling season this year with most transactions agreed before the summer holidays followed by a dampened autumn market because of the anticipated election. This shotgun election means we now stand a chance of having a half-decent autumn market regardless of who is elected.”
“It will be fascinating to see whether buyers are willing to commit to a purchase in the next couple of months and I suspect some of those that are could be rewarded with more favourable terms than they might otherwise have expected.”
“For wealthy buyers, there is certainly nothing like the fear that we witnessed in the last election with the threat of a Corbyn government. I think the domestic audience is resigned to paying higher taxes probably regardless of the outcome of the election. We anticipate many international buyers will adopt a more cautious approach until the landscape becomes clearer.”
Wayne Douglas, managing director at City & Country, commented: “The general election announcement comes as no surprise and I hope to see much-needed change, but it will not happen overnight. Increasing housing supply, planning reforms and the battle over building on green belt land will take more than a few new policy initiatives whichever Government comes into power. The new government must address the skills shortages that are causing the problem, such as a lack of experienced planners and a lack of skilled tradespeople. For example, the Royal Town Planning Institute revealed that 25% of planners left the public sector between 2013 and 2020, and in the same period the number in the private sector grew by 80%. And on construction sites all over the UK, complex projects are being delayed by a lack of skilled tradespeople.”
“On a local and national level, the new government need to create an environment where private, and particularly SME housebuilders, can thrive and ultimately support the end buyer. I would urge the new government to engage with our industry to get development off the ground more quickly and support demand for new homes across our country consistently rather than use it for short-term political gain via headline-grabbing negative statements”.
Property expert, Kate Faulkner OBE, commented: “Whoever is in government next, just like interest rate changes have been de-politicised, so must our housing strategy and delivery. It is clear that successive governments over the last 30 years, of all colours, have failed to deliver a housing sector that works for all – social tenants and those in the private sector. This failure must be addressed as a new government comes to power. If it isn’t, we will see more people on the streets and kids growing up in unacceptable temporary accommodation.”
“For every £1 spent on building a new home, £2.41 is put back into the economy, so housing drives much-needed economic growth. We are short of 1 million social homes, as a result, we have 1 million households on benefits renting in a poorly regulated private rented sector and not enough affordable homes for the next generation to buy. Robbing Peter to pay Paul policies by reducing the PRS to support first-time buyers has resulted in more people on the streets and in temporary accommodation and the biggest rise in rents we have seen for years.”
“We need a strategy that eradicates our shameful housing waiting lists. Focusing on this will free up more homes to rent and buy in the private sector.”
“We can no longer allow politics to drive the housing market the way it has over the last 30 years. We can fix our housing crisis, but only if the public and private sector work together to fund decent homes in all tenures.”
