26 Jul The UK election result
UK Election Result
The run-up to any UK election result causes uncertainty in a range of markets, including the property market. Given that property is likely to be the biggest decision and purchase people make, you can see why they decide to hold off and wait to see the outcome of the UK election result. Generally, once the results have been counted and the make-up of the Government has been confirmed, people can make a decision with a greater degree of confidence.
Of course, the 2017 General Election didn’t quite pan out in this manner. There was a hung parliament, which resulted in the Queen’s Speech being delayed. The General Election was called in a snap manner, potentially bolstering the Conservative Government before Brexit negotiations took place. It is understandable that there is not much confidence in the current government. The decision to form a majority government with the DUP and Jeremy Corbyn receiving plaudits and accolades at the Glastonbury Festival. Not even the most devoted Conservative party member would say that they are a party of power and confidence at this point in time.
There will be a lack of confidence in the government
Politically, economically and socially there was a lack of confidence mirroring the state of the property market in the run up to the election. There comes a time when people have to start getting on with their lives, but it is not unreasonable for many people to bide their time. Waiting to see how Brexit negotiations fare and whether there will be any further political upheaval in the United Kingdom.
There is a great level of mistrust and displeasure surrounding the involvement of the DUP in forming a majority government. It would be wrong to suggest that it will have any impact on the housing sector. It certainly isn’t a bigger issue than the initial hung parliament findings. While there will be many people who don’t approve of the DUP having a larger say in the role of Government, this by itself isn’t going to impact greatly on the property market.
A lack of affordable housing is a huge factor in the property market
It is fair to say that the lack of affordable housing remains the biggest factor in the UK housing sector. There has been a slowdown in property prices, however the cataclysmic predictions that were made in the wake of the Brexit vote, the current state of the property market isn’t too bad. In fact, the UK property market is holding up well. Mainly due to the fact that demand is greater than supply, which helps to inflate prices and ensure properties are sold.
While it would be wrong to make any bold or rash predictions with respect to how the UK will fare in Brexit negotiations. It would take a brave person to state that these changes have strengthened the negotiating power of the Conservative party. Going by what has unfolded in recent weeks, there is a doubt that this government are best placed to argue in favour of Great Britain.
It is likely that the ramifications of the 2017 General Election will be felt for many years to come.
If you would like to see property statistics for the London area, please visit our Area statistics page, London property statistics, Q2 ,2017