On the 22nd May 2024, Prime Minister Rishi Sunak announced that he had requested permission from King Charles III to dissolve parliament. Following this, he called a general election to be held on the 4th July 2024.
The outcome of the 2024 general election, whether resulting in a Conservative or Labour government, could have significant implications for property investment in the UK. As we countdown towards the election on 4th July, we want to discuss how the election will impact the housing market, as well as investors.
Today we will discuss the impact on investors if a Conservative government wins the election versus a Labour government. As of the 29th May, Labour is holding 44.7% of the opinion polls and Conservative has 23.5%, according to the Telegraph.
Here’s a breakdown of how each scenario might impact property investment.
Conservative Government
What will happen if a Conservative government wins the general election in 2024?
Conservative governments typically prioritise policies aimed at promoting homeownership, such as Help to Buy schemes and incentives for first-time buyers. This could stimulate demand for properties, particularly among aspiring homeowners. They also advocate for policies that support property developers and the construction industry. This could lead to continued investment in infrastructure and housing development projects, potentially boosting property values and investment opportunities.
Conservative governments generally prioritise economic stability and low inflation. This could support investor confidence in the property market and contribute to a favourable investment environment. The Conservative Party traditionally supports lower taxes and a business-friendly regulatory environment, creating a favourable tax environment for investors. They focus heavily on economic stability and infrastructure development, potentially boosting property values and investor confidence.
Labour Government
What will happen if a Labour government wins the general election in 2024?
Labour governments often prioritise policies aimed at increasing the supply of affordable housing. They also address housing affordability issues. This could lead to initiatives such as increased investment in social housing and stricter regulations on private landlords. They advocate for stronger tenant rights and protections. This could result in policies such as rent controls, longer-term tenancies, and measures to improve rental conditions, which may impact landlord profitability but benefit tenants.
Through wealth distribution, Labour governments often aim to reduce wealth inequality through measures such as higher taxes on high-income earners and property owners. Labour emphasises the importance of affordable housing and sustainability. This may lead to a more regulated yet stable rental market, with new opportunities in green investment and social housing projects. They may also prioritise investment in regional development and infrastructure projects, potentially creating new investment opportunities outside of traditional property hotspots.
Overall, the impact of the 2024 general election on property investment will depend on the specific policies implemented by the winning party and how they are received by the market. Investors should carefully monitor developments and adjust their investment strategies accordingly to navigate any changes in the property investment landscape.
Ready to invest in UK property?
Our senior property team is highly skilled at helping you find the right investment property for you. Get in touch with us today for a quick chat and embark on your investment journey with us!
