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.”
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Comments
dont underestimate governments influence on economy/housing market. If it wasnt for quantative easing and the lowest bank of england rate in history there wouldn't be a housing market right now. We can't be sure that base rates can remain this low forever. The national debt is spiralling out of control (see it go up a million every minute on the times website), this will continue to put downward pressure on the pound, which in turn will increase the costs of imports, which in turn will drive up inflation which in turn will lead to higher interest rates, which will increase the costs of mortgages, thus drive down the asset value of property in terms of ratio to income. To the shortsighted it would appear that this government has pulled us out of a proprty crash when it actual fact they have created more pain on the horizon, but then again they do need votes to win the election so theres your motive.
They needed a survey for stating the obvious? Or for PR.