Estate Agent Today

A Conservative win at the general election will make no difference to the housing market, according to a narrow majority of borrowers and investors.

They say that house prices and mortgage availability will not alter – the verdict of 53% of Savills Private Finance clients.

A further 35% think a change in government would be a positive influence, while 10% thought the impact of a Conservative government would be negative.

The Savills survey also reveals that the lack of mortgage products is the main reason why so many home owners are not remortgaging. Many have been stuck on their lender’s standard variable rate as a result of tough lending criteria and limited equity in their homes.
Melanie Bien, director of Savills Private Finance, said: “Even though the main political parties have been busy setting out their stalls regarding their plans for the housing market, home owners feel that it will make little difference which party wins the general election.

"The majority of our clients believe that last year’s rise in house prices is unsustainable and that a change in government will not result in more choice of mortgage products.

“The big problem facing borrowers is lenders’ stingy approach to maximum loan-to-values. Many lenders say they will lend to those with a 10% deposit, but the actual average LTV is often less than 60%.”

She added: “It would be fair to say that the State-owned banks in particular are not standing by their lending promises.”