Housing market frozen until election
As the date of the election is approaching both house sellers and buyers are holding back and wait for the outcome to the election to do business again. This pushes the prices in the cities and the situation is most likely to change once the votes next week are counted.
This stalemate on the reality market created through the uncertainty of the outcome of the election is ranging back over almost 3 months now and independent oberservers start to see a lack in flow of business and as a result the housing prices in London and other major cities start to rise. The countryside seems not to be affected equally to the cities.
Although the economic situation is at the brink of recovering from the recession it is not fully stabilised yet and disturbing the business in the housing sector slows down the recovery rate. The realty market is with a 4% tax a profitable income source for country, especially from London, Manchester and Kent.
Mr. Smith, CEO of a well known business assessing firm explains: “An artificial business bubble was created at the last real estate crisis and pushed economy into turmoil. However this time we are not even close to a comparable situation, as the investors are simply anxious about the outcome of the election.”
Both the Conservative Party and the Labour Party have announced ambitious plans for the market policies which also would concern those in the housing business. Depending on who comes out of this election as a winner, the market will have to adapt to the new situation.
Depending on the value of the house, ranging from categories of 125 000 British Pounds to 500 000 British Pounds and upwards the tax differs from 1%-4%. This is expected to change with the government. A member of Halifax stated: “The market remains extremely challenging with low volumes of sales currently being agreed. The forecast budget cuts and potential for tax rises are causing many prospective purchasers to wait and see. The sooner an election the better.”
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