Now the dust has settled after the Conservative’s landslide victory in last week’s general election, let’s consider what a Conservative win means for the property market.
The general feeling is that the Conservative victory should lift political uncertainty surrounding Brexit, as well as delivering the mandate to launch new housing policies. Whatever your view on Brexit, the Conservatives are adamant on getting Brexit done as quickly as possible, which will be welcomed by most businesses who have felt in limbo since the referendum results in 2016.
Last week we wrote about how the 2019 General Election would affect the UK property market, commenting on the pledges made by the Conservative government and what a Conservative win means for the property market. Here’s a recap:
Conservative housing policies
- The Conservative party on planning on introducing a “lifetime” deposit which stays with tenants as they move through the rental market.
- Create one million new homes by 2025. 300,000 of which will be complete in the early part of the new decade.
- Increase stamp duty by 3% for non-UK residents buying property – rises in stamp duty rates will encourage the shift away from property in London to more lucrative areas with lower house prices and higher yields, such as Manchester.
Whether the Conservative government will act on these pledges is to be confirmed. However, the fact stands that the Conservative’s now have a majority, meaning that the policies they present are much more likely to be passed through than before.
After Friday’s victory was confirmed, the pound surged, boosting Britain’s economy. In addition to Sterling’s gains, businesses listed on the London Stock Exchange with a UK focus have also reaped the benefits of the Conservative election victory, as global share prices have gone up following the result.
The Manchester Property Market
Another market set to benefit from the result is the Manchester property market. Whilst other investment sectors have suffered during this political volatility, the property market in Manchester has blossomed, and it will only get stronger. During Boris Johnson’s victory speech, he acknowledged the Conservative gains in Northern England. Political commentators have speculated on whether the Conservative government will increase spending on transport and the Northern Powerhouse project in the north, which will only further boost Manchester’s economy.
Whilst the pound has risen due to the Conservative victory, it still hasn’t got to where it was in April 2018, in fact it’s gone down slightly since Friday’s results. With Brexit set to take place January 31st and the UK’s confidence in a Conservative led government, now may the time to invest in a UK property before the pound surges again. This currency window of opportunity won’t last forever. If you are looking to invest in a property in Manchester, the UK’s buy-to-let hotspot, get in touch today and we will introduce you to our latest developments.