With the Conservatives winning their somewhat unpredicted majority vote last week, how do their proposed policies affect homeowners, potential buyers and buy-to-let owners compared to what was on offer by the Labour or the Liberal Democrats?
Pre election pause in activity
This month, house prices in the UK rose across the country at the highest rate in nine months according to the Royal Institution of Chartered Surveyors (RICS).
Also, the number of homeowners marketing their property for sale fell again and enquiries and purchases has ground to a virtual halt – it appears everyone was just sitting tight until after the Election to see the result and the promises of the new government.
This is expected to be short-term though with interest in buying and selling UK property projected to bounce back, even in next quarter.
Promises from the other parties
First time buyers had been a key focus on all campaigns in this Election with Labour promising a two month window of priority for first time buyers to snap up new homes.
The Liberal Democrats had on the other hand pledged a “Rent to Own” scheme to help first time buyers onto the ladder through renting first.
The Conservative’s proposition
Tackling the issue of home ownership
Key to David Cameron’s policy to tackle the UK housing problem is the continuation of the Right to Buy scheme allowing housing association tenants to purchase their home by heavy discounting.
Discounts suggested are between 35% and 70% up to maximum values of just over £100,000 in London and just over £75,000 in other UK locations.
Tackling the issue of affordable housing
Then there is the issue relating to the lack of affordable housing…
Another pledge from the Conservatives is to make available an additional 100,000 new homes for first time buyers at a 20% discount, making it a more affordable option for those young people, under 40 years of age, who are struggling to get onto the ladder. Terms apply and houses purchased under this discount scheme will have a five year period where the property can not be sold for the full market price.
Houses are to be built on brownfield land with a further aim to boost construction. The London Land Commission will release a regeneration fund of £1billion to make way for approximately 400,000 new homes.
Tackling the issue of raising a deposit
The most common issue first time buyers face is raising enough money to lay down as a deposit.
With living costs, especially in London, absorbing all their disposable income young people find it difficult to save the pennies and the pounds needed to buy their first home.
The Help to Buy ISA is to be introduced in the Autumn, with the government pledging £50 for every £200 invested, up to a maximum contribution of £3,000. This can then be used to purchase a first home to the value of £450,000 in London and £250,000 across the rest of the country.
This special “help to buy savings account” will be available to open for a period of four years yet the account can be used indefinitely and cashed in at the appropriate time.
Read more: How the help to buy ISA could affect mortgages and house prices
Post election – more policies to follow
Now the Election is done and dusted there is sure to be more initiatives to follow from the new Conservative government.