The housing sector and all that concerns it, including property development, always experience some changes a few months before and after elections. The changes that occur before the elections are mostly due to uncertainties about what the future holds for the housing sector when power changes hands. The changes that occur after the elections are based on new policies (if there are any). These changes can either be negative or positive.
The UK election is fast approaching, and so far, there have been some indications that it is going to affect property development plans.
The property market in the UK is thriving due to the high housing demand. The only problem most investors face is the high cost of building materials. The outcome of the upcoming UK election will determine the change in property development plans, and so far, it looks promising.
Why is the 2024 UK Election Promising for the Housing Sector?
Elections usually have a strong impact on most sectors, but the housing sector is taking most of the attention in this coming UK election. This is mainly due to the significant role the property market plays in the nation’s economy. The housing or property market in the UK is currently experiencing a crisis of undersupply. Part of the agenda or manifesto of major political parties is focused on handling the housing crisis with the plan to build more houses.
Labour: Labour included in their manifesto that they will build 1.5 million new houses over the next five years, and this will include creating new towns. Other agendas like making owning or renting a house affordable and creating new housing policies that will favour local communities, renters, and the general citizens were also included in their manifesto.
Conservative: The Conservative manifesto includes the plan to build 1.6 million new homes over the next five years. They also promised to abolish old unfavourable rules like the legacy EU nutrient neutrality to unlock the building of 100,000 new homes with local consent. The manifesto also included plans to create new favourable policies concerning the housing sector, including affordability.
Liberal Democrat: The Liberal Democrat party, according to their manifesto, plans to increase the building of new homes in the UK to 380,000 a year. Amongst other agendas, they plan to introduce a ‘’use it or lose it’’ policy for developers who are not willing to build. Most developers often delay building houses due to the high cost of materials. Some building materials like pipes, tiles, etc. are quite expensive. If you plan on developing your house, you can get affordable tiles and slabs from Emperormarble to help you beat down the building cost.
Other parties like Reform UK and the Green Party also have plans to improve the housing sector in their manifestos. The good thing about these parties having almost the same plans in their manifesto is that there is hope for the property market no matter the outcome of the election.
How will the UK Election Impact Property Development Plans?
We mentioned earlier that any change that occurs in the property/housing market will be based on the election outcome. According to the manifestos from the major political parties in the UK, new houses will be built. What this means is that there will be a lot of property development in the coming years. And according to the Liberal Democrat manifesto, leaving properties undeveloped for a long time will no longer be tolerated and it will be handled by the ‘’use it or lose it’’ rule. The election may impact property development plans positively, considering the manifestos from political parties.
Factors that can Change Property Development Plans due to the UK Election
The economy
Elections have always impacted the economy of a nation. The impact can be negative or positive and affects the different sectors that make up the economy, including the property market.
Pre-election uncertainties
Each ruling power comes with its policies and this causes a great deal of uncertainties whenever the time for election draws near. Some people prefer to invest in housing before the election and others avoid investing till after the election.
Change of policies
Whenever policies are changed in the housing sector, changes always occur. The policies may impact positive or negative changes, based on what they are about.
Conclusion
The UK election will change property development plans but the level and type of changes to expect are based on the incoming government.