Much has been said about what the outcome of the election could have on the housing market. Now with the election behind us, what will happen or not? We know that the proposed mansion tax on properties costing over £2 million is now something the high price property buyers can push away which should bring more interest toward the London top market properties. What of the properties below that mark and starter homes in general? Those too are expected to see renewed interest.

First time buyers have been showing more interest before the election with online property lister Righmove reporting record number of visitors to their site and a marked increase in the number of first time buyers. With the new buyers shopping around online in higher numbers it could mean they are showing interest and will return to the market during the usual increase in sales that occur in summer.

Summer is a time when the market usually sees renewed interest. People are out and about more and the change in weather brings about decision changes in lifestyle which could translate into “let’s buy a home”.

Owning a home in many areas of the UK could be cheaper than renting with lenders now offering record low interest rates on mortgages and those already in a home can benefit from the same low level interest rates on a remortgage. Fixed long term rates are abundant on the market currently.

The ripple effect of more demand in the housing market could bring change to the interest rate levels being offered on mortgages and remortgages. As demand in property rises so will the demand for lending and that will bring lenders out of their current competitive mode. With less need to compete for the attention of borrowers they will find in unnecessary to offer the cheap interest rates now tied to mortgage and remortgage loans.