Biggest share of seats since 1980s means Tories can deliver manifesto promises on housebuilding, homeownership – and Brexit
Boris Johnson has reiterated his promise to get Brexit done after voters backed the Conservative Party in the general election, handing it the party’s biggest majority since the 1980s.
With 649 out of 650 seats declared this morning, the Conservatives had secured 364 seats, an increase of 47, and Labour 203, a fall of 59.
Johnson is expected to conduct a ministerial reshuffle in the coming days in order to implement his programme for government, with his manifesto including promises on housebuilding, homeownership and a social housing white paper.
Property experts said the result, which should see the UK leave the EU by the end of next month, could well provide a boost to the housing market.
Liam Bailey, global head of research at estate agent Knight Frank, said: “This will, for the time being, end the uncertainty of a no-deal Brexit and pave the way for the release of some of the pent-up demand that has built in property markets in recent years.
”The extent to which this translates into transaction activity in the short-term will depend on the size of the pricing expectation gap between buyers and sellers.
“Supply is likely to rise as political uncertainty recedes and private and public spending stimulate the UK economy. This will put downwards pressure on prices, however some vendors may expect a bounce in prices, which may create a stand-off between buyers and sellers as the market re-prices.”
Randeesh Sandhu, chief executive of residential property finance firm Urban Exposure, said the Conservative majority was “the best result for the UK property sector” and that the housebuilding market would be boosted by a resurgent UK economy “as and when Brexit is resolved”.
He added: “They [the Conservatives] are clearly the party that has been and looks set to continue to support homeownership with a series of initiatives in their manifesto focused on supporting first time buyers, such as the proposed mortgage deposit scheme.”
The Tory manifesto contained a pledge to build one million homes over the parliamentary term which, at 200,000 new homes per year, is well below the current rate of delivery. There were 241,000 net additions last year.
It also included an ambition to build 300,000 homes a year by “the middle of the next decade”, although the language meant the party will not regard it as a manifesto pledge that must be fulfilled in this parliamentary term.
The manifesto also reiterated the previous decision to end the Help to Buy subsidy for new homes by 2023, albeit with a promise of a review to establish new ways to support homeownership.
Their manifesto says “more homeownership” in a rebalanced housing market would be the goal of a Tory government, delivering “hundreds of thousands” of affordable homes in a revamped programme.
In a promise reminiscent of David Cameron’s failed Starter Homes programme, the manifesto also pledges to build thousands of cut-price homes for sale to local people at discounts of one-third from normal market price.
It also includes promises on introducing new long-term low interest mortgages, a social housing white paper and renewal of the national affordable homes programme.
More to follow …
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