UK General Election 2024: Housing Market Confidence Soars | RWinvest Skip to content

General Election Concerns Lessen as Housing Market Confidence Soars

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    OTM Property Sentiment Index: Buyers & Sellers Show Increased Optimism

    OnTheMarket’s latest Property Sentiment Index suggests that buyer confidence increased significantly in May despite concerns surrounding the upcoming general election.

    According to their data, 85% of active buyers were confident they would purchase a property within the next three months, and 63% of sellers were equally certain they would sell their property within the same timeframe.

    What does this boost in confidence mean for the UK property investment market in the coming months?

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      General Election 2024 sign in front of Westminster

      Buyer Confidence On the Rise in May 2024 Despite Initial Concerns

      The looming election has caused some concern in various UK industries and sectors; however, this recent OTM report suggests that the housing market is going against the grain.

      Their data suggests no evidence of a slowdown in activity, with the last month seeing a significant surge in buyer sentiment to the highest level this year – skyrocketing to 85% compared to 64% in April.

      OTM suggests that increased available stock, improved weather conditions, and inflation rates are the main drivers behind this renewed confidence.

      Jason Tebb, OnTheMarket President, feels equally assured about the state of the market in the coming months. He said: “Elections are renowned for introducing uncertainty and pausing activity in the housing market until it is known who is forming the new government and what its initial plans are. But this election does not seem to be causing indecision as the outcome is not only considered by many to be a foregone conclusion but also not one of particular concern to the market.

      “There is a sense that many have put decisions on hold for long enough while interest rates have risen or been held and are now understandably keen to get on with their lives.

      “Ultimately, this feels like quite a healthy market as we head towards summer, with activity and transactions picking up, interest rates poised to come down, and property prices not running away with themselves.”

      Further Reading: Want to get the most out of buy-to-let property investment? Stay ahead of the curve and learn where to invest in 2024 and review some of the Top 10 Safe Investments with our daily market insights!

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      Increased Sellers' Confidence Boosts Overall Sales & Optimism

      While not as flourishing as the buyers’ market, seller sentiment is also rising.

      63% of sellers in May reported that they were confident that they would sell their property within three months, compared to 61% in April and 55% in December.

      Tebb believes that the worst of the nervousness surrounding the market seems to be behind us. The level of properties Sold Subject to Contract within 30 days of being listed was higher in May (43%) than in April (41%), as well as the previous year (42%).

      Speaking on this new figure, Tebb added: “When you consider that this figure fell to a low of 32% in December, it is evident that there has been some volatility along the way.

      “The sluggish market activity seen at the turn of the year is giving way to more optimism and an increase in purpose. We await with interest to see whether May’s improvement in buyer confidence translates into improved SSTC figures in the coming months as this sentiment feeds through to actual transactions.”

      Learn more about the UK property market with some of our recent buy-to-let area guides:

      General Election Concerns Lessen as Housing Market Confidence Soars

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      Reece Pape

      Reece Pape is a property writer at RWinvest. Utilising up-to-date property statistics and data, Reece aims to keep investors informed on the latest market developments.