Experts give their views on a property market under a Labour government

In Yorkshire prices slipped by 0.7 per cent in July but they are still up 1.4 per cent year on year and the average house price in God’s Own County is £252,143.

Despite concern among some that the General Election campaign would lead to a significant slowdown in home-moving activity, Rightmove’s data shows that the vast majority of people have been getting on with their moves.

The portal’s analysts say the political certainty of having the next government in place is likely to aid home-movers, though of more pressing concern to home-buyers is when the first interest rate cut will be.

However, the number of sales being agreed is 15 per cent above the same period a year ago, when we were approaching the peak of mortgage rates.

Tim Bannister, Rightmove’s Director of Property Science, says: “"It’s very early days, but the announcements on housebuilding targets and planning reform are positive signs the government is keen to get going with its manifesto pledges.”

He adds that first-time buyers need more support as many have been stretched to the limit by high mortgage rates, with some also facing higher stamp duty fees when the current thresholds are set to revert in March 2025.

Jonathan Morgan, partner at Zenko Properties in Leeds city centre, says: “We have seen a definite upturn in the sales market since the election result and the added impact of a likely fall in interest rates in August will further boost activity and confidence.

“There has also been some much-needed movement in Gilt rates for the first time in months, which will likely boost further investment in larger developments including in the build to rent and single family housing sectors.”

Heidi McElhatton in Simon Blyth’s Huddersfield office, is also positive and believes the market will be all systems go after the summer holiday period.

She adds: “Interest rates are causing some buyers to sit on the fence and some high net worth clients are worried about Capital Gains Tax but Labour has no plans to apply CGT to main residences.”

Over at Dacre, Son & Hartley, Patrick McCutcheon, head of residential, says: “We always notice subtle market variances across our nineteen offices, but one trend that is consistent across all is a noticeable uptick in activity following election day, although the fact that many private schools have broken up for summer means the positive effects are more subdued.

“The trend is very much what we expected, replicating activity from the numerous election periods which I have experienced. Given the potential downward pressure on base rates and recent drop in underlying mortgage rates we look set for a more positive autumn trading period, which will be the exact opposite of 2023.”

Judith Simpson of Cundalls estate agents, which covers rural North and East Yorkshire, says she too has had wealthy clients express concern over capital gains tax but adds most people are optimistic about a change of government.

Nicola Spencer of Spencer Estate Agents in Sheffield is worried about the large rise in sales of rental properties in the city since Labour’s plans to reform the rental sector.

It plans to ban Section 21 no fault evictions but will introduce new grounds for possession so landlords can reclaim their properties if they need to, while also strengthening tenants’ rights and protections.

Nicola adds that Sheffield City Council has also approved plans for hundreds more bed spaces in its city centre, leaving existing landlords fearful of a flooded market.

She also notes that parts of the high rise apartment market have been hit with little interest from buyers due to the Building Safety Scandal.

Non-qualifying leaseholder status is part of the Building Safety Act and applies to owners of three or more properties, including their home, is an issue..

Non-qualifying” leaseholders face uncapped costs for non-cladding defects and the burden stays with the property in perpetuity.

Nicola says: “A fifth of properties for sale in Sheffield are former rentals and the market is flooded with landlords selling up but this could help first time buyers to bag a good deal on an ex-rental house.​​​​​​​​​​​​​​​​​​​​​