London property market celebrates Conservative election win

The London property market is celebrating the Conservative Party's general election win, as buyers and seller return to business as usual.

The market held its breath in anticipation of the 7th May vote, as Labour's proposed mansion tax would have seen homes worth more than £2 million charged £3,000 per year; a fee that, combined with the promised crackdown on non-doms,  was feared would deter buyers and investors in the capital.

Now, though, the Conservative majority government has removed the uncertainty that was hindering the market, boosting confidence among sellers, investors and agents alike. London estate agent Foxton's saw its share prices surge 10 per cent on the morning after the election, while Savills also saw its share rise 7.5 per cent.

"A Conservative victory is a good result for the housing market, particularly in London," says Lucy Morton, Director and Head of agency at Prime Central London estate agency, W.A.Ellis, reporting an "immediate change in sentiment" following the news.

"As we opened for business [on Friday], two properties exchanged contracts and renewed confidence was further endorsed by the strengthening of the pound and the FTSE."

"We anticipate this renewed confidence in the property market will increase and give a much needed boost after months of uncertainty and the threat of Labour policies including rent controls and Mansion Tax," adds Morton.

"The Conservatives will continue with their commitment to solve the housing crisis and create more homes. They have targeted to create 200,000 new starter homes within the next Parliament. We believe they will also review the Council Tax rates and create a more equitable banding."

"The government I led did important work," said Prime Minister David Cameron, announcing his party's victory. "It laid the foundations for a better future, and now we must build on them. I truly believe we’re on the brink of something special in our country; we can make Britain a place where a good life is in reach for everyone who is willing to work and do the right thing."

"We are already predicting the next few weeks and months will be very busy indeed," confirms Robert Bartlett, Group CEO of Chestertons.

"There are still issues to be addressed in the property sector in London," he adds, "not least the need to boost housing supply, make the rental market more transparent and accessible, and unlocking opportunities for regeneration through a joined-up approach to planning and infrastructure delivery. We hope the new Government will continue to work with the property sector and consult properly on proposed changes so together we ensure that any new policies will work as they are intended and can help deliver the long-term sustainable growth and sensible innovations that our industry requires."

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