New research suggests homeowners could be quids in when Labour is in power. A search into house prices over the last half-century reveals interesting findings for anyone buying or selling a property.
Thinking of buying or selling your home? New research suggests that the political party in charge of the country could have a big impact on your property’s value.
A study by Clifton Private Finance looked at 50 years of house prices and found that, on average, properties have grown in value more quickly under Labour governments. Now, this doesn’t mean Labour causes house prices to rise, but it’s something to think about.
Labour Governments See Bigger House Price Jumps
The study looked at data from the Nationwide House Price Index, going all the way back to 1954. They found:
- Average house price growth under Labour governments: 9.45% per year
- Average house price growth under Conservative governments: 6.45% per year
That’s a pretty significant difference! It’s especially interesting considering that Labour was in power during the 2008 financial crash, which saw house prices plummet. On the flip side, the Conservatives oversaw the stamp duty holiday in 2020, which caused a mini house price boom.
What Does This Mean for Your Home’s Value?
The study also used these historical growth rates to make some predictions about future house prices:
- Labour’s growth rate (9.45%): Average UK property price of £690,000 by 2034
- Conservative growth rate (6.45%): Average UK property price of £520,000 by 2034
It’s important to note that these are just projections based on past trends, and no one has a crystal ball to predict the future of the housing market.
Experts Weigh In
Despite the uncertainties, experts say these findings offer some food for thought. Sam Hodgson, Editor at Clifton Private Finance, said: “This research provides an interesting historical perspective on the relationship between political leadership and property market performance.”
So, while this research shouldn’t be the only factor you consider when buying or selling a home, it does suggest that politics could play a bigger role in your property’s value than you might think.