Estate agent platform eXp UK has revealed that, on average, house prices have grown 5.4% in the year following a General Election since the 1980s.
The firm suggested that July’s election is therefore unlikely to halt the positive property market momentum that has been building in recent months.
Last week, Prime Minister Rishi Sunak announced that a general election would be held on 4th July.
eXp UK analysed the annual rate of house price growth in the year following the last 10 General Elections stretching back to 1983, adjusting for inflation.
The research found that home sellers had little to worry about when it came to a potential house price slump following a General Election.
House prices have increased in the year following every election since 1983, with the exception of two, 1992 and 2010, when the market was still in recovery during from financial crises.
The highest rate of inflation adjusted house price growth followed the general election of 1987, when Margaret Thatcher won her third term as PM.
In contrast, the lowest rate of positive house price growth following an election came after Theresa May’s election in June 2017.
Following the election of a Conservative PM over the last 10 elections, house prices have climbed by 4.6% on average, while this growth climbs to 10.9% in years following the election of a Labour PM.
Adam Day, head of eXp UK, said: “Political uncertainty can be poisonous for the property market and we saw how years of back and forth over Brexit slowly put the market into a state of deepfreeze.
“However, a General Election is unlikely to have the same impact and is often viewed by many as a time of opportunity and change, with historic figures showing that the housing market marches on regardless in the year that follows.
“While we may see some buyers choose to sit tight in hopes of further housing market incentives, the upcoming election is unlikely to dent the positive momentum that has been building in recent weeks.”
