The clear Conservative victory in yesterday’s election demonstrates the UK’s desire to move the UK forward. Overnight, as the predicted Conservative majority fast became reality, the pound surged against the dollar to a 19-month high, offering a further boost to the prospects of a Boris Britain.
Should Boris stay true to his plans for Brexit, the 3.5 years of being stuck in a limbo could finally have an outcome, which is a resounding wish amongst both business and the general public.
However, despite the uncertainty of the past few years, the UK has proven its ability to maintain its position as a top Global economic and financial centre and attractive, investable region. With Boris now able to move forward with his plans for Brexit, businesses should hopefully be able to begin to see some clarity over the next few years on how the UK will exit the EU, allowing those markets that have faltered to start to move again.
For the property market, this is good news. The uncertainty over the past few years as we remained in this limbo of ‘are we, aren’t we going to leave’ has had a knock-on effect, hindering some projects which in a normal situation would have gone ahead with little issue and causing hesitation from investors.
This strong victory from the Conservatives should restore some of the confidence within the market across the UK and amongst investors from overseas.
For the housing market, today’s election results should result in a positive boost to both activity and to prices. As with any market across the UK, the property market reacts to levels of certainty. With one of the strongest majority results in years, this activity looks likely to be very positive.
Damien Siviter, Group Managing Director, SevenCapital
Thoughts of an number of industrty experts below…
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 the end of January 2020. As expected, there have been some significant movements on 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 the 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.”
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 main election pledge has been to ‘get Brexit done’, and the result suggests people are longing for the issue to be resolved come 31stJanuary 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 deliver 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.”