A recent study by Jefferies found a link between the activity in the property market and national elections. The study monitored property transactions and prices before, during, and after the past seven UK national elections.
The results confirm our expectations : compared to the level of transactions at the time of an election, transactions have been higher in the period six to 12 months prior to and one to six months after an election. The report also shows how housing transactions fall in the four months immediately preceding an election.
This data would confirm a situation whereby sellers willing to lower asking prices before an election may lead to a drop in property prices hence, everything else equal, this period would appear to be a good time to buy.
Real Estate Advisory
Pre Election Jitters
3rd February 2015
