However, the latest research by Octane Capital has revealed how when inflation is taken into account, the housing market could benefit to the tune of 11.3% where house prices are concerned, as a result of the greater stability brought on by the appointment of Rishi Sunak as prime minister.
Octane Capital analysed property market performance across the UK market going back as far as 1970 and how house prices changed under both a Labour and Conservative government.
After adjusting for inflation, house prices have actually declined at a rate of -0.7% a year on average under a Labour prime minister. In contrast, they’ve enjoyed an average yearly increase of 11.3% under a Conservative prime minister.
With Rishi now at the helm, a similar rate of annual house price growth would boost the current average UK house price of £295,903 to £329,462 over the coming year.
Jonathan Samuels, CEO of Octane Capital, commented: “There’s certainly no fixed formula or crystal ball when it comes to future house price growth and with the market having recently endured a high level of turbulence under the brief tenure of Liz Truss as prime minister, the outlook over the next 12 months remains uncertain to say the least.
"That said, we have seen a certain degree of stability return to the market in recent weeks and the appointment of Rishi Sunak as the latest prime minister has helped to steady the ship somewhat.
"When analysing historic market trends, it’s also clear that the Conservatives have been the best party where property market buoyancy is concerned, with house prices climbing by an average of 11.3% a year under a Conservative prime minister.”
