Hopes for the property industry now Liz Truss is the new Prime Minister?

Last week saw Liz Truss replace Boris Johnson as the new Prime Minister, after beating Rishi Sunak to the post of Conservative leader. She certainly has her work cut out for her as Britain faces a cost-of-living crisis, and many in the property industry say she will have to prioritise the growing housing property crisis here in the UK. 

Housing plays a major part in supporting the economy, so industry professionals are hoping Truss starts by removing planning restrictions, to provide support in promoting an open for house building agenda. Prices continue to rise due to lack of supply, so many are calling for more stability through consistent policies to normalize the marketplace.  

A chilly winter with increased energy bills and food inflation could put vast amounts of pressure on mortgage paying homeowners, as well as tenants with rent to pay, having to make critical decisions about where their money goes. But of course, housing is a necessity, and despite there being a global financial crisis, in the past, property sales have been more affected by government interventions, such as the decision to close the housing market in 2020, and changes in Stamp Duty in 2016. 

According to Rightmove, the average property price coming to the market set a record this month. A continuous desire to move, and a small number of homes for sale, are driving further price growth, even at a time when personal finances are becoming increasingly strained.  

Zoopla stated that ‘Average house prices are up 8.3% over the last 12 months, lower than the recent high of 9.6% in March 2022.’ 

Caroline Pattinson from the North East’s leading estate agency, Pattinson Estate Agents maintains that “There are signs the housing market is losing some momentum, with surveyors reporting fewer new buyer enquiries in recent months and the number of mortgage approvals for house purchases falling below pre-pandemic levels. However, the slowdown to date has been modest, and combined with a shortage of stock on the market, has meant that price growth has remained firm. We expect the market to slow further as pressure on household budgets intensifies in the coming quarters.”