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Property industry reacts to 2019 General Election result

With the 2019 General Election result now finalised, we gather some of the reactions from those in the property industry.

Jamie Johnson, CEO at FJP Investment, said: “Many will be somewhat relieved with this result – a Conservative majority means we are a step closer to ensuring Brexit will be finalised in some shape or form come the end of January 2020. There have been some significant movements on the financial markets which are to be expected.

“Of all the possible outcomes to come from the election, a Conservative majority provides the most clarity. Their position on Brexit is clear and now we wait for Boris Johnson’s EU Withdrawal Agreement to once again be voted on in parliament. Importantly, I hope the government uses this victory to start making progress on national issues that have been ignored, such as the property market.” Paresh Raja, CEO at Market Financial Solutions, said: “In many ways, the result shouldn’t come as much of a surprise. The Conservative Party’s main election pledge has been to ‘get Brexit done’, and the result suggests people are longing for the issue to be resolved come 31stJanuary 2020.

“For the property market, this is good news. Investors have been yearning for greater certainty and while national house prices have been steadily rising as a result of sustained demand, many have adopted a wait and see approach before committing to a real estate purchase. This result provides some much-needed clarity, and I’d expect to see an increase in property transactions over the coming months.

“There are plenty of question marks hanging over the newly-elected government. Will there be changes to taxes like stamp duty? How will the housing crisis be addressed? I hope the Prime Minister addresses these questions and does not let Brexit continue to overshadow pressing national issues.”

Jerald Solis, business development and acquisitions director at Experience Invest, added: “Despite winning a majority, the Conservative party should view this only as a minor victory. Whilst this was dubbed a ‘Brexit Election’, the public has made it clear that other pressing issues must be pushed to the forefront of the newly elected government’s agenda, such as the housing crisis.

“Research from Experience Invest has shown that just 11% of consumers had faith in Boris Johnson’s previous government to solve the problem. So, the question now is how his new government will ensure the appropriate measures are put in place to ensure more people are able to jump onto the property ladder. From the promise to build 29,000 affordable homes, to simplified shared ownership and help to buy loans, the public will be expecting creative action. One of the main public concerns will now be whether the government will meet the Brexit deadline of 31st January or seek another extension.”

Bea Montoya, chief operating officer at Simply Business, commented: “Buy-to-let landlords contribute a combined £16.1bn to the economy through pre-tax spending, and it’s vital that Boris Johnson and his party recognise their importance to Britain.

“A lifetime deposit would bring about huge change, but with little detail published, it’s hard to see how this will work in practice, or the impact it could have on landlords.

“We know a quarter of landlords already plan to cash in next year due to government reform, tax hikes, and uncertainty in the market. The current tax increases imposed by the government are proving counterproductive, but with no promises to prevent those looking to sell from leaving, we could see half a million homes put up for sale next year alone.”

Now is the time to get Britain building, says FMB 
The election result must draw a line under years of crippling uncertainty that has been so toxic for UK construction, according to the Federation of Master Builders (FMB).

Brian Berry, chief executive at the FMB, added: “The new Conservative Government has a golden opportunity to sort out Brexit and set out its new vision for the UK. Building the homes and infrastructure that this country needs has to be a key priority to help drive the economy forward.”

Berry concluded: “The Government needs to back the nation’s army of small builders, by delivering on the promised £3bn National Skills Fund, investing in quality through a licensing scheme for the whole UK construction industry, and supporting local builders to retrofit the millions of homes that need to be upgraded to low carbon.”

Hew Edgar, RICS head of UK government relations and city strategy, commented: “For too long, domestic issues have been side-lined by the Brexit debate and this has negatively impacted investment and growth in land, property and construction.

“It is imperative that key issues, such as housing supply, high street and town centre renewal and climate change are a top priority for this Government. RICS will work with the new administration to ensure that these issues are tackled, in consideration of the social and environmental impact that any policy or legislation might have.”

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