The housing market could see a 11.3% boost in house prices as a result of the greater stability brought about by the appointment of Rishi Sunak as Prime Minister.
According to findings from Octane Capital, results show that nominally, Labour PMs have presided over the higher rate of house price growth, with the market enjoying a 36.2% annual average rate of increase versus just 26.6% whilst a Conservative MP has held the position.
However, Octane Capital then adjusted these historic rates of house price growth to take inflation into account, with the results revealing a very different story altogether.
In fact, after adjusting for inflation, house prices have actually declined at a rate of -0.7% a year on average under a Labour Prime Minister.
In contrast, they’ve enjoyed an average yearly increase of 11.3% under a Conservative PM.
With Sunak now at the helm, a similar rate of annual house price growth would boost the current average UK house price of £295,903 to £329,462 over the coming year.
Jonathan Samuels, CEO of Octane Capital, said: “There’s certainly no fixed formula or crystal ball when it comes to future house price growth and with the market having recently endured a high level of turbulence under the brief tenure of Liz Truss as prime minister, the outlook over the next 12 months remains uncertain to say the least.
“That said, we have seen a certain degree of stability return to the market in recent weeks and the appointment of Rishi Sunak as the latest prime minister has helped to steady the ship somewhat.
“When analysing historic market trends, it’s also clear that the Conservatives have been the best party where property market buoyancy is concerned, with house prices climbing by an average of 11.3% a year under a Conservative prime minister.”
