Experts reveal whether you should buy or sell a house before the election – and you might be very surprised by their answers

Typically in the run-up to the general election, property buyers and sellers sit on their hands. The market is getting stagnant and stagnant and agents might as well take a month or two off. But with just over five weeks to go, this early election has taken everyone by surprise.

There are few chances for a change of government, so a much bigger question hangs over anyone willing to make a move: should they now hold the line until September – or continue?

One reason to strike while the iron is hot – or rather, the garden is looking its best – is that the spring market has started at the end of this year and there is only half a school year left before everyone goes on holiday , when they won. don’t look for a new home.

If your property is already for sale, there is little reason to take it off the market, says Edward Church of estate agent Strutt & Parker. “It’s easy to get caught up in the theatricality of politics, but the election will be over in the blink of an eye, and you’ll be well positioned to catch any uptick in post-election activity.”

Winkworth CEO Dominic Agace also advises homeowners to take advantage of the day. ‘Seize the current momentum before the August holidays.’ he says, referring to Winkworth’s Highcliffe office in Dorset, which has just sold a £1.675 million house to its first viewers on the first day it was put up for sale.

The early elections will not lead to a two-month interruption, as in 2017 or 2019, says Roarie Scarisbrick of purchasing agent Property Vision. “The pre-election housing market feels different this time around as the outcome seems more predictable and the consequences of tax threats are baked into the market.”

The pace and scale of rate cuts will have a bigger impact on the market than the timing or outcome of the general election, says Lucian Cook, head of residential research at Savills. “With the prospect of lower financing costs as the year progresses, buyer demand is more likely to gain momentum in the fall, now that most of the uncertainty is behind us.”

Markets tend to be on fire after elections, so should you try to beat the recovery?

If the right property comes along, buy now, suggests Jamie Freeman of Haringtons UK, a purchasing consultant. ‘The sheep in all of us will inevitably ensure that the number of buyers will only increase when there is more clarity from a new government in the autumn.’

However, there has already been an increase in the number of homes for sale, according to Matt Thompson, head of sales at Chestertons. ‘Don’t miss it by waiting. There has been an increase in the number of house hunters keen to take advantage of the wider range of properties available.”

Complementing this, there may be a flow of parents from private schools who need to move near a state school. A report from asset manager Saltus last week found that more than a quarter of parents will take their children out of a private school and move them to a local state school if VAT is imposed by Labor.

According to Zoopla, the home sales pipeline is ‘now recovering after a period of lower sales’. The agreed sales are 12 pc. higher year on year and mortgages were 32 pct in February. higher than a year ago.

Yet demand continues to exceed supply in London. The election won’t change the lack of supply, says buying agent Henry Pryor, who advises buyers to “move on.”

‘We did not build significantly more homes this summer. We will still have the cladding crisis, the tenancy crisis and waiting for a tenant reform bill, and whoever wins, house prices and rents will be slightly higher at Christmas and just as unaffordable for most.”

In prime London, international buyers continue to press ahead before further uncertainty arises, says Shaun Drummond of Harrods Estates. ‘This includes Labour’s ever-changing property market policy and its position on stamp duty for foreign buyers.’

Encouraging inflation figures are now driving this, says Liam Monaghan, MD at LCP/PrivateOffice, a purchasing agent. ‘Some are turning away from an over-inflated rental market or want to take advantage of favorable exchange rates.’

Even the US elections are a reason to persevere, says Jimmy Waight, head of sales at John D Wood & Co: ‘Waiting until September brings other uncertainties, including the US elections. The stark contrast between Donald Trump and Joe Biden could have implications for the global economy – an important consideration for buyers in prime London.”

For those considering buying or selling their holiday home, the most important issue is tax.

“Motivated sellers want to get out while the higher capital gains tax (CGT) rate is lower (since the recent Budget),” says Katie Warren of Fixer Management Services, which acquires holiday properties for clients. Capital gains tax is a tax on the profit when you sell an asset that has increased in value. You are taxed on the amount you have earned. So if a property was bought for €250,000 and you later sell it for €300,000, you have made a profit of €50,000.

“If a new government goes ahead with the abolition of Furnished Holiday Lets (FHL) tax relief, this would also be the last year in which these benefits are obtained,” she added.

The government’s plans include the abolition of favorable tax treatment for FHLs from April 6, 2025.

Owners lose tax benefits on mortgage interest, capital gains taxes, allowable expenses and pension contributions.

Mortgage interest on FHLs is currently a deduction from rental income. From April 2025, the tax relief will instead be provided in the form of a 20pc tax credit, so for higher and additional rate taxpayers this means a reduction in tax credit of 40pc respectively. and 45 pc. From April 2025, the CGT tax rate for residential properties will be 24pc. applies to FHLs. From April 2025, you can only claim a deduction for the cost of replacing household items on your rental price and FHL winnings will no longer be considered relevant income.

Josephine Ashby of John Bray Estates in Cornwall added: ‘Buyers can use this period to negotiate hard. There are some unique properties on the market.”

Polperro in south Cornwall, a popular spot for holiday rentals

Then there is council tax on second homes which is set to double next year, adds Clare Coode of Stacks Property Search. ‘There aren’t as many buyers as usual and it really is a buyer’s market here in Cornwall.’

Still, Joanna Cocking, head of Hamptons Private Office (Land), is calling for caution among estate sellers whose homes need tender loving care. ‘Properties that are ‘turnkey’ or ‘ready to move in’ receive the most interest and the best prices. Sellers whose properties could benefit from improvements should take the time to improve the curb appeal of their home.”

For first-time buyers, it may not be worth pressing pause either, says Ben Thompson, deputy CEO at Mortgage Advice Bureau. ‘They need to make their first purchase as soon as possible so they can stop paying their landlord’s mortgage and the almost 10pc rent increases. (like last year). Buyers who delay could also be caught out if house prices start to rise again while they are renting.”

Any future reduction in the base rate for banks has already been largely factored into current mortgage rates, he says. ‘Even if this falls a little in the coming months, there are no guarantees in today’s volatile world – inflation may remain stubborn and mortgage rates may not fall much.’

Those who take a wait-and-see approach could end up paying more in stamp duty, or if stamp duty is cut and releasing years of pent-up demand, end up paying higher property prices, says Andrew Montlake, MD of Coreco mortgage brokers. ‘Buy when it suits you. Waiting for a new government can cost you as much as it can save you.’