Commenting on the UK General Election result, Randeesh Sandhu, CEO of Urban Exposure, said:
“The morning after it is still too early to tell what this election result fully means. In the short-term at least what we do know is that the key fundamentals that support the UK housing market remain. The UK domestic housing market is driven by the availability of jobs, house prices and mortgages, and it is too early to say if last night’s result will have any specific impact on these factors.
“Uncertainty is never good for markets and that’s the biggest negative from an economic and real estate market perspective. On the flip side, the weakening of sterling will again, like after the Brexit vote, potentially provide a currency boost for overseas property investors. The suggestion that today’s result may also point towards a softer Brexit is also a potential boon.
“Even yesterday we were hearing contradictory views on why Theresa May called the election in the first place and what a stronger than expected Labour performance might mean. Did Theresa May want to strengthen her negotiating position to allow her more room to argue for a softer or harder Brexit? Would a resurgent Labour be damaging through higher taxes or provide buying opportunities via increased volatility? It’s clearly too early to fully analyse the result and its impact, but we remain confident on the fundamentals of the UK property market.”
Listen to Randeesh’s full interview with Alex Peace of Estates Gazette here: