Given that not long has passed since the 2017 General Election, it is difficult to state what impact the election has had on Mid Somerset. However, there is no denying that the snap General Election had a slowdown effect on the housing market across the country. This is no surprise and it is a recognised fact that uncertainty in the political landscape causes people to be cautious with their money, which limits the number of property deals that are being concluded. While Mid Somerset has managed to weather the recent external storms better than many other areas, there is an acceptance that the political uncertainty coupled with Brexit concerns is making some people hold off on major decisions for now.
RICS saying sales are falling
Across the whole country, house sales dipped in May for the second month in a row and according to a survey undertaken by the Royal Institute for Chartered Surveyors, an increase of 8% of respondents reported that sales were falling as opposed to buying. While there are many factors influencing people’s buying decision in the property market, a significant number of respondents cited the General Election for a slowdown in the market for the month. There is no denying that people want to see the result of an election before they make a major commitment, and the outcome of the General Election of 2017 may actually cause the uncertainty to continue.
No one is too sure how the new Government will shape up
While the Queen’s Speech has been heard and Parliament is back in session, there is still doubt about how the Government moves forward from here and what is going to happen. This is likely to have a knock-on effect for many people who will want to wait more months to see how the new Government shapes up. The role of the DUP could potentially have an impact on key decisions and of course, a lot of focus now falls on Brexit negotiations and what deal can be constructed. Whether the results of the General Election have an impact on this, with some observers believing the Prime Ministers bargaining position has been weakened, remains to be seen but until people know what they are dealing with, it is only natural that they will hold off from making major decisions.
Mid Somerset shouldn’t be as affected as some areas. This is because there is a smaller level of supply of property in this area while there is always a level of demand. This means that prices should be maintained, or even rise, which stands in contrast to many areas of the UK. It may also be that the personal circumstances of people living in or looking to live in the area are not as affected by Brexit and a changing Government as other parts of the country. With this in mind, it would be reasonable to expect that Mid Somerset will not be affected by the post General Election shakedown in the way that some parts of the UK will be.
About Tom Morgan
Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk
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