What Does a Conservative UK Mean For Property Investors?
The Conservatives recorded an unprecedented landslide victory in the polls. But what does the result mean for those in property investment?
It was perhaps an underwhelming general election campaign for Britain in 2015, but one even the most revered of commentators could not have predicted. The secret Tory supporters voted in mass to ensure a David Cameron-led government, with the Conservative now in sole control for the first time in nearly two decades.
The result had ramifications throughout British politics, but what does a Conservative government mean for those involved in property investment?
200,000 new homes by 2020
This was one of the hot talking points during the election campaign, as the major political parties looked to score points on each other with their house building proposals. With the Conservatives taking the honours this time around, we can expect up to 200,000 new homes built across the UK by 2020.
There appears to be a major housing shortage in Britain, which the Tories plan to tackle head on. This rather ambitious target will be supported by a four-year £1bn brownfield regeneration fund, as first-time buyers are given a helping hand onto the property ladder.
However, there are a number of key issues, which could put the brakes on David Cameron’s housing pledge, such as the rising costs of delivery and a shortage of skilled workers in the industry. For those involved with property investment this all means one thing; the housing shortfall will continue to drive prices up.
A pledge to encourage homeownership
The Conservatives built a large part of their manifesto around the prospect of encouraging people to be aspirational and purchase their own property. The help-to-buy scheme has been an underpinning factor in this.
There’s also the extension of the Right to Buy policy, which could give 1.3 million housing association tenants the chance to purchase their home. With a clear message from the government on homeownership, this can only spell good news for property investors.
With more potential buyers on the market resulting in increased demand for properties, house prices will only continue to rise in the years ahead.
A bright future for property investors
These changes from the Conservatives certainly spell a bright future for all those linked with property investment. You also need to consider a pledge from the government on regional development, especially in some of the UK’s major cities.
With capital flowing throughout the country, there’ll be fresh opportunities for those involved with property investment. What’s certain is a one-party government will renew confidence from investors, especially if policies became transparent for all involved.
Coupled with this, there are also signs of interest rates remaining low and economic stability in the country for the first time since the financial crisis of 2008.
For all of these reasons, a Conservative government is surely good news for the property investment industry. The UK is a viable opportunity in which to invest in and should be the perfect venue for both home and overseas investors.
Jonathan Stephens is the founder of SurrendenInvest and has a wealth of experience in the property sector and shares his knowledge by writing for property and investment magazines.BLOG COMMENTS POWERED BY DISQUS