How Will a New King Effect the UK Housing Market?
The death of the queen has brought mourning and uncertainty to the UK. For many, the queen was a symbol of what it meant to be British. Her reign is the only one that most people have known throughout their lives.
So, how will losing such a symbolic figure affect the housing market? Will the uncertainty mean that a drop in prices is on the way, or will a new figurehead pave the way for a housing boom? Keep reading our article to discover what a new monarch means for you.
The Changes That Are Happening Right Now
The loss of our queen didn’t just affect the UK. It shook most of the world. Canada shares the same monarchy, and many other countries, like America, admire the royal family. Why is this relevant? Well, when the queen passed, it meant that people from far and wide came to see her coffin and mourn her loss.
People travelling from across the world needed somewhere to stay in London. So, while they were here, they invested in short-stay apartments, hotels, cafes, restaurants, shops and supermarkets. And it’s not just people from across the sea that invested in London. People flocked from across the UK to see the queen's coffin and watch the funeral precession. In short, London has faced a boom in investment due to the loss of its figures.
This boom means that rental values, especially for short-stay apartments, have increased in some areas. And, because the local economy is booming, house prices are also benefitting. The loss of the queen and the rise of our new king is a sea that causes all boats to rise, including the price of property in the south.
Changes That Will Happen with a New King
Now, what changes can we expect to see moving forward? Just like the passing of the queen brought investment into the UK, the coronation of the new king will have the same effect. There are going to be many ‘once in a lifetime’ events and ceremonies happening in the coming months. This will mean more money being spent at local businesses, which will alleviate some of the financial pressures we are currently facing.
Charles has also earned the nickname “The Green King” due to his passion for environmental sustainability. Although there is nothing certain at this point, we do expect that this will eventually cause some ripples, but this will most likely affect new-build developers and landlords.
In 2025, The Future Home Standard will take place. It’s a new piece of legislation which is pushing for new build properties to have 75%-85% fewer carbon emissions. This, mixed with changes to EPC ratings for landlords, gives a good indication of where the housing market is heading when it comes to sustainability.
We can see Charles championing this. Will it mean an increase in house prices or a decrease for homes with high carbon emissions? As of yet, there is no way of telling. We can only guess and guessing property values is something that we don’t do at Compass Residential.
The One Certain Thing
If anything is certain in this time of change, then it’s that we’re still delivering the high-quality service that we promise. Regardless of the economic situation, we will sell your home for the best possible value, and we’ll have your house sold quicker than you can say “long live the king”.
You never know how recent changes in the economy have impacted the value of your home, so book your free valuation today by clicking here. Have certainty in uncertain times. Speak with an estate agent you can trust, today.