UK ELECTION: PROPERTY INVESTORS’ GUIDE.

Following the Conservative party’s election victory, the outlook for investors in UK property markets remains positive.

As the UK settles into another five years of Conservative leadership, we look at the pre-election pledges that all UK property investors should be aware of.

Housebuilding

The Conservatives plan to support a surge in housebuilding to tackle the UK’s major housing shortage, aiming for 200,000 new homes for first-time buyers and 275,000 additional affordable homes by 2020. This goal will be supported by a four-year, GBP1 billion brownfield regeneration fund.

Despite these ambitions, a number of structural issues will continue to put the brakes on residential construction. From soaring delivery costs to a shortage of skilled workers to deliver new developments and bureaucracy holding up planning processes, there are key issues that need to be addressed over the long-term to solve the country’s chronic undersupply situation.

In the meantime, investors can expect the ongoing housing shortfall to continue driving price rises.

Encouraging homeownership

Taxation is always a hot election topic and inheritance tax cuts formed a major element of Cameron’s manifesto. Under the plans, parents will be able to pass on property worth up to GBP1 million to their children without paying this tax.

Meanwhile for aspiring homeowners, a number of plans, particularly in support of first-time buyers, have been outlined. Chancellor George Osborne’s Spring Budget announcement included pension reforms to enable retirees to invest in property, while the Help to Buy ISA will help first-time buyers get on the property ladder. Meanwhile an extension of the Right to Buy policy is set to allow 1.3 million housing association tenants the opportunity to buy their homes.

Any support for the UK’s culture of home ownership should be seen as good news by investors. With yet more buyers receiving a helping hand to purchase property, these measures will contribute to increasing demand and can therefore be expected to drive further future price growth.

Regional development

IP Global election infographic - pockets of value in UK.jpg

A significant priority for the Cameron government will be building national unity while driving greater fiscal devolution. London is expected to continue to grow its status as a leading global magnet for foreign investors, but regions outside of the capital are also set to benefit from greater control of local tax revenue and decision-making.

The Spring Budget confirmed the Conservative party’s commitment to its Northern Powerhouse vision, with Manchester handed the right to retain increases in business rates revenue. This move is expected to drive the delivery of city-specific infrastructure and regeneration plans, creating more opportunities for private and overseas investment. Read our Manchester Market Update for more about the city’s investment case.

As capital flows into the UK’s second-tier cities and regions, new pockets of value will emerge (see fig.1), offering promising opportunities for property investors.

Investor confidence

We can’t yet be sure which of these pre-election pledges will turn into post-election commitments, but overall the sentiment is very positive for property investors.

At the time of writing, the Conservatives were on course to win by a narrow majority. Once the results are formally confirmed, the Prime Minister will move swiftly to form a government over the coming days. With this certainty will come a renewed confidence from investors amid a familiar and therefore more transparent policy climate. There are also signs that interest rates will stay low as the Bank of England’s current trajectory remains in place. The prospect of economic growth momentum and stability is good news for investors.

In the short and long term, the election result is likely to support the stability and viability of the UK as a property investment market, and we therefore expect the country to retain its status as a safe haven for overseas investors for years to come.

simon.roberts@ipglobal-ltd.com

Alex Evans

You May Also Enjoy

small house bird box
Breaking News

UK First Time Buyers better off than many other global nations

Is it really that bad being a first-time buyer? UK better off than many other global nations when it comes to affordability The latest market analysis from Yopa, the full-service estate agents, reveals that first-time buyers (FTBs) in the UK may be paying 63% more to get a foot on the property ladder than they…
Read More
new build homes colchester essex
Breaking News

Building Safety Regulator Reform

The Government has announced reforms to the Building Safety Regulator, including leadership, process and investment. The changes are hoped to deliver 1.5 million homes. The reforms pave the way for creation of a single construction safety regulator, as recommended by the Grenfell Tower enquiry. David Smith, property litigation partner at London law firm Spector Constant…
Read More
Breaking News

New anti-money laundering rules now in effect: what landlords need to know

New anti-money laundering (AML) rules came into effect this month, marking a significant change for landlords and the lettings industry as a whole. The new rules mean financial sanctions checks are now required for all lettings, regardless of how much rent is charged. Here, Steve Bond, managing director of residential lettings for Beresfords, explains what…
Read More
Breaking News

What landlords need to know about the upcoming Renters Rights Bill

The government’s long-awaited Renters Rights Bill is one of the most significant overhauls of the private rental sector in decades. While it has not yet received royal assent, the legislation is expected to come into effect late this year, or early in 2026. With the bill moving closer to becoming law, Steven Bond, managing director…
Read More
Breaking News

Mortgage approvals bounce back in May

The latest figures show that: – Mortgage approvals on house purchases for May sat at 63,032 up 3.9% from 60,656 in April. The monthly increase seen in May marks the end of four months of previous decline, with approval levels having fallen each month since January of this year. Approvals are also 2.5% higher than…
Read More
Breaking News

Money and Credit – May 2025

Key points: Net borrowing of mortgage debt by individuals increased by £2.8 billion to £2.1 billion in May, following a large decrease in net borrowing of £13.8 billion to -£0.8 billion in April. Net mortgage approvals for house purchases increased by 2,400 to 63,000 in May. Approvals for remortgaging also increased by 6,200 to 41,500…
Read More