Home Sale Network

HOUSING MARKET INFLUENCED BY NATIONAL RATHER THAN LOCAL POLITICS

The national political scene has a far greater influence on the residential property market than its local counterpart, according to a new survey.

While local politics has an undoubted impact on the levels of council tax around the country, it is far less influential when it comes to prospective home buyers decisions, house prices and planning policy.

These are among the findings from the latest National Property Survey by Home Sale Network, the UK‘s leading network 750 independent, quality selected estate agents.

A large majority of members responding to the survey (86%) say that prospective buyers are not concerned with the make-up of local councils.

Meanwhile, not a single member reported that a local authority‘s political make-up is among the main concerns for buyers, with the remaining 14% saying it is one of many factors to be weighed up when buying a home.

Similarly, local politics and the party political leadership of local councils has no effect on house prices according to 91% of Home Sale Network respondents. Only 4% of members believe the political scene can have a positive influence on house prices, whilst a similar percentage – 3% say the local governments‘ impact can be negative. Some 2% say the uncertainty caused by a “hung” council can influence local house prices.

The survey reveals a stronger link between local government and planning policy, with over a third (31%) saying there is a direct relationship between the party in control of the local council and the number of new homes which are built in its area.

Meanwhile more than half – 51%– say it is national politics and the make-up of central government which affects planning policy, regarding house building around the country. However, almost 18% believe house planning is determined by purely market-driven, non-political issues.

According to the Home Sale Network survey it is only on the issue of council tax rates that members believe there is a strong link between local authorities and the state of the housing market. 64% of respondents reported that the money spent by local councils and the way they spend it, helps determine the level of council tax.

Meanwhile, 16% of respondents actually believe that, although central government has the ultimate say over council tax levels, it will look more favourably on authorities led by politicians drawn from the same party. One-fifth of members say the make-up of local councils has no effect on council tax.

Richard Tucker, Managing Director of Home Sale Network, commented: "Whilst it is not surprising to see that members detect a strong link between council tax levels and local politics, there is no doubt it is the politicians in Whitehall who have far more influence on the residential property market.

"They are the people who set house building targets, for example, and whose actions have a major impact on house prices. It is very telling that the make-up of local councils is seen to have no influence whatsoever on prospective buyers who, as previous surveys have shown, are far more interested in local amenities such as the proximity of good schools."

ENDS 15th September 2005For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

Notes to Editor

The Home Sale Network is made up of 750 of the country‘s leading independent estate agents selected as being the best in their locality for service, knowledge and all round professionalism.