The government’s response to the country’s financial deficit is starting to take affect and the worry is that it will be felt strongly in the property market in 2010. We have already had the VAT and stamp duty restored to previous levels. The industry has now got its sights firmly fixed on the general election which is expected to be on May 6th. This is a sensible approach as chancellors never take unpopular actions before an election but frequently do so afterwards as they then have up to 5 years for voters to forget. The fears are that we will see interest rate rises and tax increases from whichever party wins the election which might all have an adverse effect on property prices and demand from buyers which is still at a historical low will be further depressed. In North Wales we do not expect demand or prices to improve for a further 18 months so renting out maybe the best option rather leaving a property empty.
