In the last 3 and a half years, the UK has been plagued by uncertainties brought about by BREXIT which have adversely affected the economy including the property market.
The recent electoral victory by the Conservatives have given a boost to the market with the GBP continuing its upward movement upon the announcement of election results. Market reaction was positive because the new Prime Minister Boris Johnson is committed to delivering BREXIT on the 31st of January 2020.
On the real estate front, with the Conservatives back in power, we can expect government support for the building of more affordable housing to continue as demand for affordable housings continue to outstrip supply. Especially important is the government’s Help-to-Buy scheme, which provides support to families looking to purchase homes. Our current project in Bromley, London to build affordable homes for the locals is expected to benefit from the demand and support for housing.
Despite the general optimism, we should not underestimate the BREXIT challenges coming the way of the new government. While we expect the UK economy to find its water level in the longer term, we should be prepared for significant short- to medium-term volatilities.
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