Liberal Economics Political Debating Forum

The last eleven years we have been exchanging homes under a Labour government. The results of their legislative changes relating to Stamp Duty Land Tax & the development of Home Information Packs have unquestionably had a direct impact on the UK property market and house prices in general.

We have reached a brand new era and we’ll all need to get accustomed to property selling under a Lib Dem / Conservative coalition.. For those preparing for selling a house this is an area now full of anxiety. So, how will selling a home be different under the Conservatives and Lib Dems?

The immediate answer is, no difference whatsoever, at the very least not necessarily right away. Looking into the future it is a different story. It is in no way easy, in fact it is nigh on impossible to second guess the actions of any government, but a merger between the right and the left is really a quandary all of us own.

Thankfully the housing market is one subject where both Lib Dems & Conservatives have similar ideas. Already they have shown their desire and ability to speak with one voice, by announcing that the Home Information Pack would be abolished under their government.

So a fundamental house selling requirement is getting ready to be removed from the equation (a good thing I believe as it will probably encourage a lot more sellers in to the market).  The latest information we have is that HiPs should be a thing of the past (along with the organizations that supplied them) as soon as the beginning of June. Home Information Packs will be scrapped but EPC’s will remain (however, the cost of an EPC will without a doubt rise significantly from the present £50-£70 price range ).

There are also stories of another piece of housing legislation thought to be being tabled by the government very soon. A source close to the Conservative Party’s housing team has said that the government is planning on putting forward legislation to make it easier for people in social housing to move around the country.

According to the source, the bill would include making it obligatory for social housing landlords to keep a percentage of their housing vacant for people wanting to transfer from elsewhere in the united kingdom. An announcement to this effect may well be tabled for inclusion within the forthcoming Queen’s speech.

Outsiders looking in may speculate that this is to help the economy, by allowing workers to move where their skills are needed in the labour market. Teachers will be able to move to where they are most needed for example. Surely a good thing?

This is especially probable given it is apparently from the Conservative camp, whereas the Lib Dems would likely pass it simply because they see the social advantages of the bill. For instance, a more sceptical person can look at it as the Conservatives seeking to bring cheap labour in to areas where it is needed by big business.

Whatever the reason, this is all we have to go on, in order to look into the minds of our new government and determine what home selling under it will be like, in 6 months, a year and beyond.

We can really only tell what we already knew: the Conservatives — like any government — will seek to do right by its core supporters- the rich and upper middle classes.

This leads us to speculate that things like Labour’s Stamp Duty rise to 5% on property over a million pounds may well feel the sharp end of the reformists axe in the near future.

On the other hand, David Cameron is New Conservative (why does that ring a bell?) and we have the Liberal Democrat angle to consider. So, I will end it as I started, there is no way of knowing or even guessing what it will be like to sell & buy property under the new government, one thing is certain though, Home Information Packs are dead ducks and good riddance I say. Viva la revolution!