It’s an outcome nobody could have predicted—the UK has woken up this morning to a hung parliament. After a lacklustre campaign from the Conservative party, and a surge in support for Labour leader Jeremy Corbyn, neither party has 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 the Conservatives will go on to form a government with the support of a smaller group; Theresa May could form an alliance with the Democratic Unionists, for example, whose 10 seats would push her just past the majority target of 326. However, Jeremy Corbyn has also said he is ‘ready to serve’ and will be in talks over the upcoming days 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 impossible to tell which party will be taking the country forward. Revisit our guide to the Party manifestos points on housing and property to gain a sense of what could be on the cards. 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 last night, after exit polls successfully predicted the hung parliament outcome; take a look at our guest blog from foreign exchange specialists Argentex to find out more.
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.
Whatever happens, Enness will continue to bring you relevant updates on the impact on the property market.