Property and Politics

We've just had a general election. With a very decisive result. How will it impact property? Good or bad?

Three key points for me:

1. Clarity. Property market is driven by millions of individual actors, all trying to get the best deal for themselves and their family. Uncertainty is the biggest brake on the market. Years of political instability, referendums and general elections had seriously reduced the number of transactions.  This will change and I anticipate a big jump in people moving home in 2020.

2. Policy. No doubt about it, Jeremy Corbyn and Labour spooked many investors. There was vague talk of "rent caps" and other ill conceived, half launched policies. This caused many investment buyers to put decisions on hold. A big Boris win gets the investor side of the market moving again. The new government does need to take serious look at reducing Stamp Duty, as no other policy decision would have the same instant stimulant on the market.  Also, let's look at tax policy that encourages rather than discourages investment in property.

3. Brexit. No doubt Boris and his government will Get Brexit Done (I heard that once or twice in the election!). This clarity of purpose helps the property market. Will Brexit have a wider impact? Much harder to predict. My theory is that that property is driven by fundamentals (we need somewhere to live) and psychology. Clear direction and action progress. So I'm predicting a Brexit property boom. 

Feels great to write this! After so many years of indecision and the threat of an anti private property Labour government, we now have a strong government with a clear pro private property agenda. I'm really optimistic for the UK property market in 2020 and expect a big growth in number of transactions and house prices.