“I would hope that an incoming government would consider reforms to the freedom and choice regime as a priority. There is clear evidence that members are making poor decumulation decisions and an initiative to address this would be most welcome.”
Mortgages
A general election can have an impact on mortgage rates, often indirectly through its influence on economic conditions, investor confidence and monetary policy decisions, according to Nicholas Mendes, mortgage technical manager at John Charcol.
“During the run-up to an election, uncertainty about the future political landscape typically causes financial market fluctuations,” he explained. “This instability can prompt lenders to adopt a more cautious approach, potentially delaying significant rate reductions until the economic outlook becomes clearer.”
He added: “Once the election results are known, the outcome can either alleviate or exacerbate market uncertainties. A decisive victory and a clear mandate for the winning party often lead to increased economic confidence and stability, which, coupled with falling inflation and future bank rate reductions being priced into swaps, can positively influence financial markets and mortgage rates.”
It has also been widely assumed that a general election campaign now makes a rate cut by the Bank of England over the summer less likely, since the Bank will not want its decision to be politicised.
Simon Bridgland, broker and director at Release Freedom, said whoever wins the election, reform of housing policy is required.
“Protection for tenants, advantages for private landlords to stop the haemorrhaging of life in this market and a housing minister in office longer than I wear my socks would be a good starting point.
“Stability and a solid plan to solve the housing issue are long overdue.”
Laura Suter, AJ Bell personal finance director, agreed the state of the housing market was a key concern.
"First-time buyers will want to see an extension to support helping them get a foot on the ladder, while existing homeowners will hope for policies that moderate inflation and increase the likelihood of interest rate cuts."
Investments
Labour has claimed it will look to simplify the Isa landscape to make it easier for people to invest.
Selby said: "This is something that AJ Bell has campaigned for consistently over a number of years, calling for the creation of a single ‘One Isa’ product incorporating the best features of the existing six Isas.
"No sensible person designing a savings system from scratch would propose the plethora of different Isas we have on offer today.”
Meanwhile, James Henderson, co-manager of the Henderson Opportunities Trust, Lowland and Law Debenture, said an election could be good for the economy and for shares.
"I don’t see a lot of difference between the two parties on major policy issues – certainly not enough to scare the markets. The Labour commitment to house building maybe difficult with the planners but is real and could benefit companies with large landbanks. Labour governments have traditionally been good for domestic infrastructure companies, but infrastructure investment is needed regardless of who wins.
