Tory Election Win Good for Market
Whether, you voted Tory, Labour, Liberal Democrat, SNP, UKIP, Green Party or you voted for no party at all, it can’t be denied that a Tory Election Win is going to be good for the Housing Market.
As that will be the case, a Tory election win will also be good for the Contractor Mortgages Market too.
Firstly, Labour’s Mansion Tax on properties over £2m will not now be implemented.
You may think that this won’t affect contractors too much. However, the price of houses and flats have gone through the roof in London, This is where a large percentage of contractors live and work.
London has become very much an international city and foreign buyers are pushing house prices higher there.
Supply and Demand for Property
Secondly, the Conservatives won’t be going on any public housing building programme that Labour might have done. This would have boosted the supply of houses and flats on the market.
As those who know their economics know there is the Laws of Supply and Demand. This says that if you increase the supply of a commodity then the price will fall.
There are also no plans by the Conservatives to give planning permission for houses on green belt sites or even in brown field sites in major cities.
This will keep the supply of houses down as the population rises. This is mainly based on heavy immigration which is mainly in the London area.
So, in the next few years, the factors will not be in place for a major increase in the supply of housing to the market.
Therefore, as the demand for housing is increasing, the price of housing should increase too as the supply of housing is rising at a slower rate.
Specialist Contractor Mortgages
The Tory election win will have a knock-on effect on the specialist contractor mortgages market.
This has been healthy for some time now. There seems to be no reason to expect that to change in the ear future.
To find out more information about Specialist Contractor Mortgages brokers, or to apply, click on Specialist Contractor Mortgages