Whilst news rooms around the country were buzzing with activity and political commentators prepared to pull all nighters, there was one community that were almost instantly celebrating - property owners, investors and estate agents.
Regardless of political opinion, economic certainty and a return to sanity for the UK political system meant seriously good news for an industry that had felt a collective breath holding whilst MP’s sorted themselves out.
That’s not to say, of course, that the UK property market had experienced a difficult year, far from it, but it often felt as though it was a sports car being forced to drive with the handbrake on.
Now we may be entering what many have now called the ‘Boris Bounce’, where the economy kicks on knowing that there will be political stability for the next half a decade or so.
Earlier this month MoneyWeek reported that the Royal Institution of Chartered Surveyors (RICS) released its first monthly sentiment review from its members (estate agents and surveyors), which revealed an ‘unambiguously positive’ mood amongst those in the industry following the election result.
Within the headline, however, the report also revealed that surveyors reported new buyer enquiries rising to their highest level since January 2016. This was in addition to prime property sales in London, driven largely by overseas investors, rising by a third in the final quarter of 2019, showing a huge vote of confidence from foreign investors into the UK property market.
The Daily Mail was also reporting predictions by leading estate agents that prices could rise by as much as 2% across the UK in 2020 following what many consider to be a resolution to the recent Brexit uncertainty.
The Negotiator also ran with a number of interviews with leading market experts asking for their predictions for the property market in 2020, with the majority reinforcing the view that economic certainty would bring about renewed confidence and investment, driving prices up.
Good news for investors
Good overall property market performance will always spell good news for investors, and those investing in residential Buy-To-Let (BTL) properties. With renewed confidence comes greater foreign investment, and with greater demand comes greater capital appreciation.
There is little sign of the discrepancy between supply and demand in the market ending any time soon, and so yields across investment BTL have remained strong, and look to follow in a similar vein throughout this year.
There is also a specific boost for regional cities like Sheffield and Manchester following the Conservative victory, as the party’s new voter base that carried them to victory are mainly based around northern areas, and so it will come as little surprise that the Prime Minister will look to focus investment and economic support to those areas.
Infrastructure improvements and job creation were steady in any case, but with a specific focus coming from government, this should accelerate the process, and this is perhaps why the regions are starting to record such strong construction figures and investment interest.
Coming through what have been turbulent years was never going to be easy, but it’s fair to say that the UK economy, and specifically property, have not just weathered the storm but thrived. Now it seems that a level of certainty and a positive outlook over the industry could well see it take off the hand brake and hit top speed.