After weeks and months of campaigning, broadcasts and election pledges, yesterday’s general election vote has resulted in a landslide victory for the Conservative Party. What will this mean for the UK property market?
Leading voices from the property and finance industry have offered their views on the results and whether the UK’s voting choice at the ballot box will be positive or negative for those hoping to get on the property ladder.
Founder and Managing Director of Sourced Capital, Stephen Moss: “As the markets bounce around and then settle in the wake of the Conservative landslide, investor thoughts will be buoyed.
We’ve seen property stocks bounce up to 10% this morning on the election news and this will cement a ‘property is safe as houses’ viewpoint which will stand the market in good stead going forward, both from an investment and residential point of view.”
Paresh Raja, CEO of Market Financial Solutions: “In many ways, today’s result shouldn’t come as much of a surprise. The Conservative Party’s central election pledge has been to ‘get Brexit done’, and the result suggests people are longing for the issue to be resolved come 31st January 2020. What’s more, a majority government means we’re less likely to see a legislative deadlock in Westminster as has been the case since the last election.
“For the property market, this is good news. Investors have been yearning for greater certainty and while national house prices have been steadily rising as a result of sustained demand, many have adopted a wait and see approach before committing to a real estate purchase. This result provides some much-needed clarity, and I’d expect to see an increase in property transactions over the coming months.
“There are plenty of question marks hanging over the newly-elected Government. When will the long-overdue budget be delivered? Will there be changes to taxes like stamp duty? How will the housing crisis be addressed? I hope the Prime Minister addresses these questions and does not let Brexit continue to overshadow pressing national issues.
“For now, at least, all eyes are turned to the end of January when Boris Johnson’s commitment to delivering Brexit will be put to the ultimate test.”
Jerald Solis, Business Development and Acquisitions Director of Experience Invest: “Despite winning a majority, the Conservative party should view this only as a minor victory. Whilst this was dubbed a ‘Brexit Election’, the public has made it clear that other pressing issues must be pushed to the forefront of the newly elected Government’s agenda, such as the housing crisis.
“Research from Experience Invest has shown that just 11% of consumers had faith in Boris Johnson’s previous Government to solve the problem. So, the question now is how his new Government will ensure the appropriate measures are put in place to ensure more people are able to jump onto the property ladder. From the promise to build 29,000 affordable homes, to simplified shared ownership and help to buy loans, the public will be expecting creative action.
“One of the main public concerns will now be whether the Government will meet the Brexit deadline of 31st January or seek another extension. After all, with over half (53%) of consumers Experience Invest surveyed agreeing that prolonging Brexit is counterproductive to solving the housing crisis, we cannot let Brexit overshadow pressing national issues that have been ignored for far too long.”
Director of RIFT Research and Development Ltd, Sarah Collins: “The political landscape is now more certain than it’s been since 2015 and the Government’s stance on tax reliefs such as R&D tax credit will, we trust, continue.
Over £4bn in such support is provided each year in addition to SEIS/EIS and Entrepreneur’s Tax Relief and this, in our view, helps fuel the economy and stimulate British business. Something that is much needed given the turmoil endured over the last few years.”
Director of Benham and Reeves, Marc von Grundherr: “Forget political alignments for the minute, as we finally have a sense of certainty on which we can move forward as a nation, and while the curtain is far from falling on the rollercoaster that has been our European departure, we should see a fair degree of positive property market stimulation as we enter into next year.
The sluggish one per cent annual rates of house price growth that have plagued the market for the last few years should now give way to a far healthier three to four per cent.
It may take time to reverse the more negative trends we’ve seen across London. However, prime central London, in particular, should now lead the way with some very healthy levels of activity and price growth. That is, of course, provided the unnecessary attack on foreign investment in the form of a 3% hike in stamp duty is reneged upon, as this would be a poor way to repay those that have kept the market’s head above water by way of a consistent level of investment during some otherwise tough times.”
Founder and CEO of Stone Real Estate, Michael Stone: “While the Government’s track record of late has been fairly admirable with some 241,000 new homes delivered this year, there’s always room for improvement, and now the election dust has settled we should hopefully see an unhindered route to delivery and a positive impact on social housing, given that it is linked via S106 agreements.
We’ve seen many big housebuilders operate on a more hands-off basis of late, largely due to a lower rate of house price growth and a fear of financial underperformance in tough market conditions. However, the new build sector has actually been the silver bullet against Brexit uncertainty with those opting to enter the fray rewarded with consistent levels of buyer demand and buoyant sold prices to match.
With things only about to get better, the new build sector can expect a busy time over the coming year as pent up market apprehension surrounding our political landscape is relieved to a degree, and more homes are built, more homes are bought, and market sentiment receives a well-needed boost.”
Jamie Johnson, CEO of FJP Investment: “Many will be somewhat relieved with this result – a Conservative majority means we are a step closer to ensuring Brexit will be finalised in some shape or form come to the end of January 2020. As expected, there have been some significant movements in the financial markets, which is to be expected. Once an election result is announced, the markets will naturally take time to adjust to the news, before once again becoming stable.
“Of all the possible outcomes to come from yesterday’s election, a Conservative majority provides the most clarity. Their position on Brexit is clear, and now we wait for Boris Johnson’s EU Withdrawal Agreement to once again be voted on in parliament. Importantly, I hope the Government uses this victory to start making progress on national issues that have been ignored, such as the property market.”
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