Anderson Harris Insights

A recent study indicates that Labour’s election win was partly brought about by huge numbers of UK mortgage holders voting for Labour in light of elevated interest rates. An analysis of voting patterns in England and Wales revealed that Labour saw substantial gains in areas with prevalent mortgaged households. This translated to a remarkable increase of 51 seats in these areas, marking a 165% rise compared to the previous election in 2019. On the other hand, the Conservative Party suffered setbacks in these constituencies as well as in areas where renting or outright home ownership is more common.

Anderson Harris Director, Harry, says, “In part, the Labour party has currently high mortgage rates to thank for their election victory, especially in the large swathes of the now crumbled blue wall. With Labour making house building a key plank of their policy platform, house builders will need confidence that young buyers will be there to actually buy these homes. This means keeping interest rates at a level where borrowers can afford to borrow. The Chancellor spent a good portion of her career working at the Bank of England . While she has no direct control of monetary policy, she will be looking for an accommodative rate environment to help with their central growth agenda.

The past two years have been exceptionally tough for mortgaged homeowners due to considerably higher mortgage rates. In the wake of the Truss budget and the economic tumult that followed, many feel that the Conservative's fate in this election was sealed there and then. Economic shocks often force governments out, from Black Wednesday and the Global Financial Crisis to Mini Budget madness; you do not want to be in power when the economy tanks.

We review this in the third edition of Capital & Interests:- What is the plan for Britain’s much-maligned housing market?

Click here to read.