Construction’s election week: 01.05.15

With less than a week to go until the election it seems that housing has become the dark horse of the 2015 campaign, having crept in from a low base to edge higher in both the Conservatives’ and Labour’s agendas as polling day draws closer.

This week it was Labour’s turn to announce their own election housing “giveaway” in the form of a freeze on stamp duty for homes up to £300,000 for first-time buyers and a pledge to limit rents in the private sector. Nearly £200m was wiped off the value of housebuilders Taylor Wimpey, Barratt Developments and Persimmon after share price falls following the announcement.

The construction industry overall has given a mixed reaction to the move, which drew parallels with the Conservatives’ own right to buy plans announced earlier. But despite the pledges, both parties have stalled in the polls giving more fuel to fears that a “coalition of chaos” awaits us in the months ahead.

As polling day looms, Cameron has become more pumped up, but the economy has begun to deflate - it slowed to 0.3% in Q1 of 2015, with a fall in construction output partly blamed for the slowdown.

Yet even though the election hasn’t happened yet, some political eyes have turned to events beyond the next parliament with both Boris Johnson and George Osborne asked about the fate of Cameron if the PM fails to secure a majority on the second attempt.

Both men declined to give a straight answer while maintaining luke-warm support for the PM. Whatever happens in the next seven days, it seems that the political gamesmanship is only just beginning.