The gaps are narrowing. It is looking less likely that the Conservative landslide that was predicted when the election was announced, will happen. Not many people will trust the pollsters this time around, after the false Brexit vote and the US presidential election predictions. A better barometer of election victory is thought to be the local bookies and some pollsters are looking at the types of election bets people are putting on. With less than one week until the election, odds are 1/12 for the Conservatives, 13/2 for Labour and outside odds for the other parties range from 500/1 or 1000/1.
The Conservatives have stated they plan to give more money to local authorities who would have the opportunity to get involved with the development of council homes. The most controversial measure from the perspective of landowners would be to reform compulsory purchase powers. This would mean landowners could be asked to give up their land for less than the full value. Andrew Carter at Centre for Cities believes that there are ways of giving landowners fair value through a market system so the process could be controlled to the benefit of all.
Labour’s focus is on the rental market, with the addition of the promise of 100,000 council and housing association homes by the end of the next parliament. Jeremy Corbyn wants to help those in the rental sector by increasing the minimum tenancy length to three years, scrapping the right-to-buy scheme and getting rid of letting fees.
Effect on Brexit
Brexit is going to take place, there is no getting around it; Article 50 has been officially triggered and now it is down to how we negotiate our exit. As would be expected, Brexit has featured in both campaigns, although probably more heavily in the Conservative campaign. Theresa May is determined to have a strong and stable Brexit that draws on Britain’s global outlook and create new trade agreements with other countries. Jeremy Corbyn’s approach is to retain access to the single market and reject the idea that ‘no deal’ is viable in EU negotiations.
Demand on the housing market has long outweighed market supply. A simplistic look at some of the factors which have affected the issue of supply are the financial crisis, which affected construction output and also successive governments have built fewer homes than needed resulting in a ‘housing crisis’. Brexit and the General Election mean that some homeowners are waiting to see what the outcome of this uncertain time is before selling their existing properties. However, don’t neglect factors such as the growth and expansion that will continue, especially in the towns and cities of the North and Midlands irregardless of the outcome of this 2017 election.
Would you like to talk to someone about the effect of the General Election and Brexit on investment property? Call us in the UK or Hong Kong or fill in the contact form below.