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UK Property Investment: Should You Buy Before the General Election?

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    Hold or Invest? Experts Say Buy Now, Don’t Wait for Rate Cuts

    With the General Election just around the corner, buyers and sellers may wonder whether they should hang on to see if the current market becomes more favourable for their property investment business plan.

    New insights from industry expert Jason Tebb suggest buyers may want to invest in property sooner rather than later.

    Let’s look at that in more detail and learn more about investing in UK real estate during a General Election year.

    Discover More: Check out our guide on what to expect with UK property investment for more buy-to-let insights.

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      hand putting a voting slip into a ballot box

      When Should Buyers Purchase During a General Election Year?

      OnTheMarket president Jason Tebb advises buyers not to wait for an interest rate cut or General Election before making a transaction. Tebb explained that while it’s understandable for buyers to wait for inflation to decrease and borrowing costs to go down, there’s a limited transaction window before the General Election, which could bring more uncertainty.

      He pointed out that market activity tends to slow due to uncertainty as we approach a general election, with buyers and sellers holding off until the outcome is known. Those eager to buy or sell this year may want to act sooner rather than later. Transactions can take time, especially as the first quarter is already over.

      Tebb emphasised that while lower interest rates may seem attractive, the timing of such a change is uncertain, so investors may want to adjust their property investment strategy. Waiting could mean missing the optimal time to buy or sell property. He suggested accepting a slightly higher interest rate and taking advantage of the current market conditions might be better.

      The latest OnTheMarket Property Sentiment Index showed that confidence levels among buyers and sellers about moving in the next three months remained steady at 65% and 60%, respectively. The research also revealed that 45% of properties were Sold Subject to Contract (SSTC) within 30 days of being first advertised for sale in March, the same as last year.

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      Do General Elections Impact the Property Market as Much as People Say?

      While Tebb states that the General Election may cause a lull in buyer and seller activity, research from Hamptons suggests otherwise.

      Data suggests that home buying and selling activity doesn’t typically decrease leading up to a general election. In fact, the number of sales agreed in the three months before the vote usually rises by 7% compared to the preceding year.

      During this period, a larger proportion of yearly sales tends to occur. Interestingly, this trend isn’t solely due to anticipation of political change, as post-election sales also increased by approximately 6%.

      As such, if you’re a buy-to-let investor, you may want to keep an eye on properties with good-value prices and high rental yield potential in areas with solid capital growth predictions, regardless of external factors surrounding the General Election.

      If you’d like to know more about buy-to-let property for sale in the UK, check out some of our area guides, including:

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      Dale Barham

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      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.