Calling a snap election was always a risky strategy, but until the exit poll came in at 10 pm, many still believed Theresa May would walk away with a majority. Sadly, this was not the case and now we are left with a hung parliament and no clear way forward.
Today, the property industry and landlords have reacted to the news. The general consensus of opinion appears to be that the next few months are going to be difficult for everyone.
Uncertain Times Ahead
A hung parliament signals uncertainty. An extended period of uncertainty is bad for the economy, bad for the property market, and definitely bad for landlords. Uncertainty leads to procrastination. Sellers are reluctant to sell because they are worried they might not achieve the right price for their property and buyers are reluctant to buy in case property prices fall in the interim.
The whole point of the snap election was so that Theresa May could have a mandate to take the UK forward into Brexit negotiations without too much interference. Unfortunately, she has now lost the majority she so badly needed.
A New Housing Minister is On the Cards
The Tory Housing Minister lost his seat in the election, so the post will need to be filled by someone new. This will have an effect on government housing policy going forward and housing is likely to take a back seat for a while.
In the short-term, a lack of confidence in government’s ability to make decisions is going to have a knock-on effect on the housing market. This is bad for landlords and the property market in general.
