Prime property markets optimistic for potential Labour government
People living in the Prime property markets are optimistic about an incoming Labour government, after current leader Keir Starmer distanced the party from the policies of his predecessor.
Former leader Jeremy Corbyn proposed policies like mansion taxes, which has since been ruled out by Starmer. Meanwhile it’s thought changes to capital gains tax are highly unlikely.
Mark Parkinson, managing director of Middleton Advisors, said: “Our research suggests cause for optimism ahead of next year’s general election.
“The likelihood of an incoming Labour government no longer feels like a massive threat to prime property markets in London and the country.
“We are heartened by Labour’s recent policy announcements alongside the historical data showing the real house price growth delivered by two of the past three Labour governments.
“That said, the primary task for any incoming government – irrespective of colour – is to curb inflation and rekindle economic growth.
“With real house prices currently at 2003 levels, a return to the prospect of continuing real wage rises could make housing today look relatively cheap.”
Research from Middleton shows that, when adjusted for RPI inflation, real house prices have fallen by 7.5% since the coalition government took power in 2010 and by 6% since the last general election.
Since 1976, there have been 10 prime ministers. Tony Blair enjoyed the highest real house price growth during his premiership, averaging 9% per annum compound.
However, four of the five regimes which presided over falling real house prices were Conservative.