Homeowners are not expected to be able to log in each day to property price estimator sites and watch their equity levels rise daily as they did last year, but the housing market is expected to do well this summer and bring added equity for property owners. Higher equity levels may be what some homeowners are waiting for before they seek a remortgage as it could offer the ability to gain a lower interest rate or offer more cash release for them. While there are reports of possible increases in lender’s offered interest rates once demand for property increases, the rates are still due to stay at cheap borrowing levels in comparison to that seen before the recession.

The expected boost to the market is likely to be seen first in London and the surrounding areas outside the capital that offer an easy commute. Residential research chief at Savills, Lucian Cook, predicts that prime properties in London will increase 22.7% in the next five years while those outside London are to grow by 23.9% in the same time period. Overall, UK property values are expected to increase by 19.3% over the next 5 years.

Mr. Cook noted that the housing market will now be set to see a boost as the election has ended with no increase in tax on those buying high cost properties over £2 million in London. Therefore those seeking to relocate from London will find it easier to sell their homes and buy elsewhere, benefitting the market both inside and outside of London.

Furthermore, as more confidence is seen in the market in general it will benefit other areas.

Mr. Cook remarked, “We expect the mainstream housing markets to pick up a little momentum over the short term, simply because of greater certainty over the political landscape and economic policy.

“That is likely to result in an uptick in new buyer enquiries and transaction levels generally.

“Political certainty is also likely to prevent a dip in house building, as planning policies put in place prior to the election gain further traction. However, there remains a pressing need for substantially increased new build supply and a far more coordinated long term housing strategy for the UK.”