Alex Mackay: A period of growth and stability awaits
The weekend press has been well populated with comments and analysis from property agents and developers who consider the newly elected Government, with a substantial working majority, as a significant adrenaline boost for the ailing residential property sector.
Knight Frank have said they expect €54 billion worth of overseas investment to be channeled into the London property market over the next 12 weeks. It sounds like a lot, but when you consider the figures being bandied about for overseas investment into the UK’s business sector at something around $3.5 trillion, then maybe it’s not so much.
In our marketplace on the popular south coast and Mid Sussex, the market stalled pre-election and now we expect a significant bounce in January.
Many of our clients have been hanging on for the election to be concluded and the day after the election we received five instructions from clients, suggesting that people are ready to proceed and move on. Since 2016, the property market has been gripped by political uncertainty but, now, with a such a decisive election result, the market can move on. Many buyers and sellers have had their lives on hold leading to a severe restriction in stock, but now, with a much-expected bounce, I anticipate a confidence returning.
Many developers that work with our specialist New Homes department expect the sector to improve significantly, with some even planning to upscale build programmes across all sites in the first few months of 2020. Regionally, developers anticipate completing on eight to 10 per cent more homes during next year – an encouraging increase for the sector.
With interest rates likely to hold at 0.75% next month, the whole industry is gearing up for what it hopes is a long awaited period of growth and stability.