A new stable government usually improves property activity, which might push prices up, and Labour’s freedom to buy policy, which will have the government act as a guarantor for people unable to save big deposits, could help more on to ladder.
Experts warn that although Labour will be looking closely at how to make improvements in the property sector, it won’t happen immediately. “However, it isn’t going to make much of a difference in the short-term. House prices and sales have been tepid for most of 2024 so far, and they don’t look likely to warm up any time soon.”Karen Noye, mortgage expert at Quilter, said: “Time will tell whether a new Labour government will help spur buyers back to the market. Such ambitious housing targets have historically been challenging to meet, and this is likely to be no different.
But no cut came, and rates still stand at 5.25 per cent with mortgage rates also increasing. However, in recent weeks, major lenders including HSBC, Barclays and Santander have started cutting fixed rates.