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polling station sign and Union Jack flag - UK prepares for elections

On the 9th June, the UK was left stunned by a surprise election result – where the Tories failed to secure the 326 seats needed to sweep to victory. The resulting hung parliament has sent shockwaves through the country – causing the pound to drop almost immediately after. Experts predict it might have impact on the property market in the future – here’s our verdict.

The Impact of the Election on UK Property Investment

  • Strong and stable? Theresa May stated that the UK needs some sort of stability in the lead-up to Brexit. Sadly, the results suggest that we’re not going to get it. Historically, the property market has been adversely affected by uncertainty – with investors holding off buying, which in turn, places pressure on the rental market (due to lack of supply).

 

  • More international investment. If the pound continues to drop, it’s likely that overseas interest in UK property will grow. The favourable exchange rate will serve as a key motivation, particularly for those seeking investment properties in London.

 

  • Worsening housing crisis? The current housing crisis has seen thousands of Brits driven into rented accommodation – which is bad news for tenants, but beneficial to landlords, due to rising demand. If the economy suffers as a result of the election, it’s likely that construction may stall; meaning fewer new houses built.

 

  • Overall stability. It’s important to remember that the property market has withstood many political shocks in the past, notably the Brexit result last year. Although prices may temporarily be affected, it’s unlikely to have much long-term impact. Experts predict that UK property investors will still enjoy good capital growth, not to mention excellent rental income from their buy-to-let properties.

Property Investment Opportunities?

Uncertainty in the market sometimes creates new opportunities, particularly for those looking for buy-to-let property for sale. The rental market is booming at present, with landlords struggling to keep up with tenant demand; and the potential to generate ROI from both rental income and capital growth is huge, especially if you purchase in the right place.

If you’re considering investing in UK property, it makes good sense to work with a property investment agent. They’re likely to have houses on their books that aren’t available to the general market, and which are priced competitively to sell. It’s also worth considering buying a house at auction, as there’s plenty of potential to make a big saving. Most buyers at property auctions tend to save around 15% of the market value.

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