Hugh Wade-Jones discusses how the UK property market will fare after the shock election result.
Hugh Wade-Jones (pictured) is managing director at Enness
It’s an outcome nobody could have predicted— a hung parliament. After a lacklustre campaign from the Conservative party, and a surge in support for Labour leader Jeremy Corbyn, neither party achieved a majority and the country now waits in a state of anticipation and uncertainty. As for what will happen next, nobody can be sure.
As the party with the most votes, history dictates that the Conservatives would go on to form a government with the support of a smaller group which they have done with the Democratic Unionist Party (DUP) . However, Jeremy Corbyn has also said he is ‘ready to serve’ and is reportedly in talks to form a coalition.
Those currently in the process of buying or selling a home may wish to pause for several weeks until the country’s future is more certain; at this moment in time it is difficult to tell which party will be taking the country forward. However, it should be noted that the market has been slow of late for many other reasons, such as inflation overtaking wage growth, changes in buy to let lending regulations and the impact of additional stamp duty taxes.
The only thing currently certain is the UK faces more uncertainty. The pound nosedived after exit polls successfully predicted the hung parliament outcome.
But there is a silver lining for many clients as the current uncertainty offers potential advantages. A dip in the pound could in fact benefit foreign investors looking to purchase in the UK, as exchange rates could be more favourable. Experienced investors who feel confident of their ability to take a long-term view could also benefit from the hesitation of others to secure good deals at favourable prices.”
