Residential Property: the election effect …

Bidwells.co.uk/research

‘Keep calm and carry on.’ says Guy Jenkinson, Head of New Homes and Residential Research at Bidwells following the formation of the new coalition government.

Commenting in the latest edition of the Bidwells Residential Databook released today, Jenkinson says ‘As the frenetic political horse trading ends the real work to establish ‘stable government’ begins. In the formation of the new government ‘compromise’ seems to have been the order of the day. However as the Stock market appears to be holding, The EU and IMF has propped up the Euro, UK interest rates remain unchanged at 0.5%, both the Nationwide and RICS are reporting an increase in house prices and market activity, for those involved with property, it is clearly a case of ‘keep calm and carry on.’

Ahead of the election, across the Bidwells region, we had seen little resistance from buyers and sellers to make a move. Interest in the property market was maintained as website activity has continued to grow with visitors eager to see ‘what’s on the market’ with genuine enquires up on the previous 3 months. Our own statistics, together with the Nationwide's national figures and figures released on Monday from the RICS, all indicate an increase in national values between 10–15% year on year. This is good news and must warm the heart of any new government when so much of the economy is still in recovery.

‘Whatever happens government will have to grapple with the growing deficit of houses, brought on by the general growth of the population, the increase in single person dwellings and increased life expectancy - all contribute to the ever growing demand for homes and therefore the increased demand for land on which to build.’ continues Jenkinson

‘The markets are seeking stability, confident leadership and a vision and strategy to deal with the national debt. It is this issue, tackling the public sector debt, which will have an impact on the housing sector. The outlook for the new government is not encouraging. If the new team are to ‘get a grip’ of the economic situation, there will have to be public spending cuts, public sector unemployment, a reduction in infrastructure investment and higher taxation. The Bank of England has already responded well to the new government’s ‘sensible’ immediate decision to cut the deficit ‘head on’ with a £6 billion cut in public spending by the end of 2010.’

Jenkinson concludes ‘We have witnessed 9 Housing Ministers over the last 13 years of Labour – let us hope that we will have more commitment and a greater  appreciation of the country's housing needs from the new Minister – whoever he or she might be!’

Download the Residential Databook 9

For further information please contact:
Guy Jenkinson Head of Bidwells New Homes and Residential Research
tel; 07802 930314 or email.