UK ELECTION DAY - Carry On Regardless by Russell Quirk
Today, it’s election day and we are delighted to feature an article by Russell Quirk, Co-Founder of ProperPR and a regular media commentator on property and politics. In this article, Russell, an esteemed LPF member, delves into the significant impact of political decisions on the property market and the remarkable resilience of the sector despite numerous challenges. At The Luxury Property Forum, we pride ourselves on bringing you the most insightful and thought-provoking content from the leading minds in the industry.
Today is D-Day. Not the celebratory anniversary one that Rishi Sunak abandoned in Normandy a couple of weeks back, but instead a political Decision Day.
I often hear the words, ‘I don’t do politics’ or ‘I’m politically agnostic’. I especially hear this amongst property CEOs that are frightened of being seen to take a position in case verging on one side of the ideological spectrum or another might cause ‘offence’.
Well, I have news for you - EVERYTHING is political. From the fuel that goes into your car or the power that propels your EV, to the cost of living, to how quickly you get to see a doctor to whether a foreign antagonist sets their sights on interfering with us, it’s all made better or made worse depending on who our political masters are. And today you get to decide which version of a government oversees such for the next five years.
Clearly there’s a lot at stake and this election campaign has focussed upon immigration, tax, net zero, the economy and certain leaders either falling on their political swords (see the aforementioned Rishi Sunak D-Day faux pas) or had them falling out of kayaks and from water slides.
Yet one rather important topic has not received much attention at all despite it being literally close to home.
Housing is a key issue. The shortage of new builds, the cost of a mortgage, landlord regulation, the green belt, first time buyers and stamp duty. All are components of a sector that in many ways is broken and in dire need of attention and repair politically but which is also largely misunderstood by politicians on all sides. In fact, despite a decades long, vacuous approach to boosting housing supply we see the Westminster elite constantly using property as a political football for their own headline generating ends, spewing announcement after announcement on new towns, regeneration, first time buyer help, social housing funding, infrastructure support and so on, that just end up buried in the graveyard of political promises.
But here’s the thing. In spite of the ineptitude and the failure of successive governments and politicians over many years, the UK property market has remained remarkably resilient.
House prices have barely ever dropped in any meaningful way in decades, the only two exceptions being the early 90’s and in 2008/9. Resi transactions have hardly fluctuated at all with our long long term average sitting at 1.1m sales per annum pretty consistently and all of the last three years’ totals have exceeded that level.
In this three year period we have encountered a once in a century pandemic, three punitive lockdowns, the perceived consequences of Brexit and its accompanying media frenzy, plus a war in Europe that for a while threatened to cut off our entire supply of gas and electricity, rampant inflation, fourteen consecutive hikes in borrowing costs - and so many prime ministers that I’ve lost count. Yet still the property market prevails.
At the top end of the market, things have arguably been less buoyant and less certain. The absence of Russian buyers, global economic uncertainty, penal stamp duty costs and competition from a plethora of other glamorous cities have meant that London has ebbed and flowed. Yet records have still been set, buyers have been found and indeed, the Prime Rental Sector has been explosive. ‘London will always be London’ and remains coveted by wealthy overseas purchasers in search of trophy assets.
In writing this and reminding us all that the last few years have been somewhat good to us, my message today of all days is that today’s election actually won’t matter that much to our sector albeit that the ‘change’ that the almost certain Labour victory heralds will perhaps provide a perception of relief and positivity in and of itself.
In any event, sellers will still sell. Buyers will still buy. Rentals will still need renting. And the country’s agents and industry suppliers will still be required.
At times, we may have to sing a little harder for our supper but the reality is that businesses, business owners, consumers and the public generally are a lot, lot more resilient and scrappy than our political masters give us credit for.
Ergo it’s not ‘government’ that drives growth and economic prosperity, it’s you.
And no matter how much the next administration gets in the way of entrepreneurial progress and ambition, history tells us that it will all be ok.
So, as you were.
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The team at Proper PR are Public Relations specialists delivering everything you need to place you in front of your target audience, raising your profile to the next level. With dedication and panache in equal measure, their flair with the written word will create comprehensive, content-driven communication strategies that ensure your brand connects with the right audience on websites, social media, and targeted publications. Founder Russell Quirk has 25 years’ property experience in both traditional estate agency and as a pioneer of the online sector.
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