Finally the UK has a majority Government after a torrid near 4 years since the EU Referendum. No matter what your politics, the sheer instability created by the years since the EU Referendum has impacted all of our lives and the collective ‘mental health’ of the nation.
A majority Government and a significant majority at that, has meant that the collective sigh of relief has been audible this morning.
I have been running WEST-The Property Consultancy in Oxford and Wantage, for some 20 years, a small independent business and as an Estate Agency, we do perform in a market that is a barometer for how the nation feels about their future and their financial well-being. Over this past period a lot of people have put plans on hold and undergone self-enforced ‘decision holidays’, but I am forecasting a positive bounce for the residential property market and potentially as soon as post Christmas 2019. I don’t mean by this rampant capital appreciation in terms of property values, what I do mean is the return of people making ‘life’ decisions and moving forward with their plans, especially those who occupy the demographic whereby they are ‘down-sizing’ and potentially providing their children with funds to get on to the property ladder. This potentially means, in my view, a return to trading volumes not seen since pre 2015.
Some of the diminution in property values that has occurred in recent years due to the perfect storm of ‘Brexit’ and a minority Government, will I think be to a point mitigated by this General Election result and the ‘stability that it represents. This, coupled with the lowest cost of borrowing for 300 years, must be fertile ground for improved sentiment in the Residential property market.
Yes, there are still clouds on the horizon such as how our exit from the EU is negotiated and the impact that the negotiated settlement has on our economy. Yes, the indebtedness of the Western world being masked by the modern day financial instrument that is Quantitative Easing (QE) is a subject that not many of us as normal mortals consider on a daily basis and this is a real and intellectual challenge for global Governments and their sovereign banks. These however are matters that none us outside of the sphere of Government and international high finance can influence but what we can do is get on with our lives (which in and of itself drives the engine of the UK economy) and todays General Election result will see millions of us get on and do just that.
Have a happy and relaxing Festive Season and we look forward to seeing you as Sellers, Buyers, Landlords and Tenants in 2020.