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Property Industry Reacts to Snap General Election

Prime Minister Theresa May has confirmed that a snap general election is being called because the success of Brexit has been compromised by a division in Westminster.

She added that while she was not in favour of an early election, it was the only way to guarantee both security and certainty for the future.

The property industry appears to welcome the prospect of a solid government dedicated to delivering Brexit, but some leaders have warned that the election could have short-term complications for market activity.

JLL research head Jon Neale said the announcement of a June 8th snap general election is a positive thing for the British property industry. The likelihood of a general election coinciding with the conclusion of the two-year post-Article 50 period is no longer an issue, making a transitional period more feasible. There is also a reduced likelihood that UK businesses will have to face a return to World Trade Solution trading guidelines and total customs control with the European Union.

Structural Defects Insurance

Colliers International chief economist Walter Boettcher said that the calling of a general election has inserted a new date into the overall European uncertainty. However, the long-term advantages of a firm government action plan to occupiers and investors will surpass the short-term hesitation in decision making that will arise after the announcement. Firm deals that are already in progress are likely to continue while more recent deals may slow down between now and the election.

Quinn Estates managing director Mark Quinn said that calling an election was the right thing to do. He pointed out that many things have changed since the 2015 election, and if the Prime Minister’s plan is approved by parliament, all parties from all political backgrounds will have the chance to show leadership and deliver.

RICS  parliamentary and public affairs manager Lewis Johnston said that while Theresa May’s intention in calling a general election was to provide greater stability and clarity, the move creates additional uncertainty in the built environment. Mr Johnston said that all parties must now establish clear policy proposals across property, land, infrastructure, and construction  to reassure everyone that the UK can provide the homes, offices, infrastructure, and key building projects it needs to thrive.

Revo chief executive Ed Cooke said that the economic and political uncertainty has clearly impacted the property and retail markets, and that stable political environments are critical to long-term business moves.

Simon Boyd, head of Christchurch Construction firm REIDsteel, welcomed the election as a chance for the nation to support Brexit. He said that UK businesses need more certainty so that the future can be properly planned for, and referred to the election as a ‘seismic’ chance for the Prime Minister to seek the most favourable deal from the UK. He added that whatever the popular sentiment at the time of the referendum, most people now want the government to orchestrate an arrangement that benefits the UK.

Judging by the feeling of industry leaders, it looks likely the snap general election may cause more caution on deals in the immediate short-term, but overall with the general election just 6 weeks away, there should be a swift and certain outcome. This will help add confidence and stability going forward. It looks likely to be a positive outcome for construction and the housebuilding industry.

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