The last few months have seemed to be somewhat of a political rollercoaster. The snap election was unforeseen by so many and I am sure it will have been a bigger surprise within some circles than others. Nevertheless, the result has shown how the country is divided in opinion. In this piece, I intend to outline where the property industry stood in the build-up, and how they fare post-election results.
After most events of this magnitude, it is interesting to read through statements published by key individuals, for the property industry, this refers to major Private Practices. Gerry Hughes, Chief Executive at GVA was quoted as saying; “Today’s result is certainly not the outcome the property market had hoped for. Both parties must now act as a unified front to secure the best deal for the UK in exiting the EU, delivering much-needed stability and clarity for the markets and confidence for the UK and overseas investors. Reducing any uncertainty is crucial.”
It was interesting to read statements such as these; clearly, the end result of the election was not what the property market was hoping for. This is re-enforced by articles such as the one printed by The Telegraph, citing that millions of pounds were donated to The Conservative Party from property developers – a reported total of £3.3million. The general consensus appeared to be that the property market felt The Conservative Party would bring more –much needed- stability to the sector. As everyone knows, uncertainty is the number one enemy of business, meaning any move to reduce such an issue is usually widely accepted by the business world.
On the opposing side, other housing experts have been quoted stating the result may not be as negative as first feared. Andy Foote – Sales Director at Seven Capital – states how he believes the property market remains an attractive, strong growth market: “While the London market may be more sensitive to a change in central government, for the short term, growth markets will remain robust and resilient, delivering capital growth for investors,” Foote says. “Despite the change in government, the imbalance of supply and demand in the UK property market still persists.”
The market has been driving strong again since the Election Day with optimism and confidence. Property week recently conducted a survey with industry professionals which found more than half (55%) do not feel their current deals will be affected by the political situation. A mere 6.5% believe their deals may be called off, but the outstanding percentage feel their deals will proceed after some re-evaluation.
It would appear the market can drive forward and begin to provide the stability in which it craves – coming weeks, months and years will undoubtedly be an interesting and potentially exciting time for all involved!
Bradley Flatt, General Practice Surveying, Foundation Recruitment