A new government always brings uncertainty to the property market. Lenders hold fire. Buyers hesitate. Sellers wonder whether to list or wait. But uncertainty doesn't have to mean panic. Understanding what's likely to change, and what probably won't, gives you the tools to make smarter decisions about your home.
The incoming administration has promised significant changes across multiple areas of the economy. For property owners and buyers, the real question isn't whether change is coming. It's which changes matter most to you, and when.
The mortgage market faces a waiting game
Right now, the average two-year fixed mortgage rate sits at 6.6%, while five-year deals average 4.81%. These rates reflect the Bank of England's base rate of 3.75%, unchanged since September 2023. Whether the new government can influence interest rate decisions is limited. The Bank operates independently, so don't expect direct pressure on borrowing costs from policy announcements alone.
What matters more is economic stability. If the new government's policies inspire confidence in the economy, lenders may become more competitive. If uncertainty lingers, they'll hold back. Many buyers and remortgage customers are already locking into five-year fixed rates to protect against further rises. That pattern probably continues regardless of which party is in power.
House building: the one promise that actually affects your area
Every incoming government promises more homes. This one is no different. More housebuilding could eventually ease supply shortages, particularly in regions where first-time buyers struggle most. Yet building takes years, not months. Don't expect supply to shift dramatically in the next 12 weeks.
What could shift faster is planning reform. If the new government loosens planning restrictions or streamlines approval processes, developers may move more schemes forward. That's good news for areas with land available but bad news for communities hoping to slow growth. If you're considering buying in an area earmarked for expansion, expect more competition and faster price movement.
Rental reform and landlord policy: watch this space
Renters outnumber homeowners in many UK towns and cities. Policy changes affecting the rental market can indirectly shape property prices. If the government introduces stricter landlord regulations, some buy-to-let investors may sell. That could release more stock onto the market. Others may raise rents to offset new costs, pushing more renters towards buying instead.
The current house price situation, with annual growth at 3.8% and an average property valued at £270,080, suggests a stable market rather than a booming one. Fresh rental rules could nudge that either way. Homeowners who also rent out a property should expect change here. Those buying to live in their home are less directly affected.
Tax changes and stamp duty: the elephant in the room
No announcement yet on changes to stamp duty, council tax, or capital gains tax on property. The last government left these untouched. But incoming administrations often review tax policy early. Any changes here will ripple through the market fast. Sellers may rush to complete before new rates. Buyers may hesitate if costs rise. Keep your eye on tax announcements in the coming weeks. They matter more to your pocket than most policy promises.
What you should actually do right now
Don't make rushed decisions based on what might happen. Instead, act on what you know. If you're on a tracker or standard variable rate mortgage, fixing your rate locks in certainty. At 4.81% for five years, you know exactly what you'll pay. That's valuable peace of mind regardless of government policy.
If you're thinking of selling, the stable market conditions mean you're not racing against a deadline. Take time to prepare your home properly and price it fairly. Buyers aren't panicking either, so well-presented properties still attract serious offers.
First-time buyers should focus on affordability rather than timing. With inflation at 2.8%, the real cost of property isn't accelerating wildly. Government schemes are unlikely to disappear overnight, even if they're reformed. If you can afford a deposit and pass a mortgage affordability check now, waiting for policy clarity often means missing out.
Incoming governments rarely reshape housing markets overnight. Economic forces, interest rate decisions, and the slow grind of housebuilding matter far more than 100 days of new policies. That's not a reason to ignore what's coming. It's a reason to stay informed without losing sleep.