Zoopla says a Labour victory would be “likely” to lead to falling house prices and rising interest rates and suggests “a continuation of the current coalition” would continue recovery in the housing market.
The portal, which last week announced it was taking over price comparison website uSwitch, says average house prices have risen 9.7 per cent across the country over the past five years under the current government largely due to what it describes as an improving economy, higher employment and policies designed to further encourage property ownership and investment.
“As a result, a continuation of the current coalition would likely result in the continued recovery in the housing market” says a statement from the portal’s communications chief, Lawrence Hall.
But it says Labour policies, by design or accident, will make UK property generally a less attractive investment.
“It will appear less attractive to owners as a result of proposed new property taxes, less attractive to landlords and investors as a result of proposed new rent controls and less attractive to first-time buyers and lenders as a result of proposed changes to current government support schemes” says Hall.
He says issues still to be resolved in the market include a possible tax on unoccupied residences, an update to council tax bands and clamping down on rogue landlords, as well as the most important way to solve the UK’s housing problems - to build more homes.
Hall is particularly critical of the mansion tax which he says is “a good political soundbite but a poor policy” which is a “tax on working British families.”
He is also critical of Labour’s rent control policies.