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General Election 2017: Reaction from the property industry

Posted 9 June 2017 by Keith Osborne

Senior figures from the UK property industry give their reaction to the result of the general election...

The result of the general election surprised almost everyone – not least, housing minister Gavin Barwell, who has lost his seat – and here we look at some of the initial reaction from senior figures in the UK property industry to see how they think a hung parliament will affect the market for homebuyers.

Greg Hill, deputy chief executive at former WhatHouse? Housebuilder of the Year Hill: “No business likes uncertainty and housebuilders like it least of all. This hung parliament and the horse-trading that will take place over housing policy to get a coalition in place means that many housebuilders will hit the pause button on their investment decisions. This is the exact wrong moment for a construction slow down. The country needs new homes desperately. We hope that the negotiations are concluded rapidly so that the new government is in place and ready to work with the sector to go out and get building. As part of the [Brexit] negotiations the new government must act immediately to keep the flow of talent from the Continent open. We will not be able to deliver one million or more homes by 2022 if we don’t have a sufficient volume of skilled builders to construct them.”

Nick LeemingNick Leeming, chairman of renowned estate agency Jackson-Stops & Staff: “The housing market has already been the recipient of doom and gloom in the news this week and certainty is now required to inject confidence and increase fluidity across all levels. With Gavin Barwell gone, it will be interesting to see what happens to the long awaited Housing White Paper that disappeared from the scene since its publication in February. Regardless of how the government is formed, it is clear from each of the main political parties’ manifestos that housing is a priority and so a clear strategy must be put in place to tackle the problems of supply, high transaction costs and affordability.”

Chris Nelson, co-founder at egg Homes: “In light of this unprecedented and unclear result, I hope that politicians will put rivalries aside to form a strong and co-operative coalition in order to put the UK in the best position to secure a strong Brexit deal. At egg Homes, we would really like the government to put tackling the housing crisis high on the agenda. This can be done through making it easy for developers to access land, simplifying the planning permission process and encouraging mass housebuilding to become more sustainable and environmentally friendly.”

Bjorn Howard, group CEO of Aster Group: “What’s needed now is consistency rather than upheaval. A government must be formed as quickly as possible so that we can continue to build on the progress made in recent years in supporting the housing and housebuilding sectors. It was a good sign for the sector that all major parties recognised the need for a focus on housing in their manifestos. Whatever the outcome, developers, housing associations and the government must acknowledge the importance of partnership working. Encouraging the sector to work more closely together is crucial to finding the solutions needed to alleviate the crisis right across the UK, not just in the big cities.”

John East, director of Kinleigh Folkard & Hayward land and new homes division: “The property market thrives on confidence and it’s important the uncertainty of a hung parliament is quickly resolved and a clear strategy is set out to tackle housing shortfalls, particularly in London.”

Philip Woolner, joint managing partner of East Anglian estate agency Cheffins: “We can safely say that Cambridge’s incredibly strong demand for housing, high levels of employment and strength as one of the key pillars in the UK’s economic recovery ought to mean we are somewhat protected from the impact which may be felt elsewhere in the country. Too many of our population are faced with the issue of never being able to afford their own home, and should politicians deliver on their promises, hopefully this level of development ought to help tackle this increasing problem.”

Matthew Turner, CEO of Astute Property Search: “The British pound will weaken, providing international purchasers with the further opportunity to purchase with a favourable exchange rate. However, uncertainty will cause prospective buyers to stay out of the market, leading to fewer transactions going forward. The next few days will see negotiations which will decide whether we enter into a coalition or a minority Labour government and with Brexit on the horizon, the uncertainty is set to continue for the foreseeable future.”

Nicholas Harris​Nicholas Harris, chief executive of affordable housing provider Stonewater: “It’s a result that creates uncertainty, however, both Labour and Conservative parties share an ambitious commitment to tackling the nation’s affordable housing crisis and we hope they will work together to keep housing at the top of the government’s agenda. We look forward to working with the new government at all levels to help shape the detail of housing policy so we can build the decent, affordable homes that are so badly needed.”

Martin Bikhit, managing director of estate agency Kay & Co: “Whether we end up with a minority Labour government, or with a formal coalition, as in 2015, will depend on the various negotiations that will take place in the next few days. Cool heads will be needed and a period of political uncertainty – hopefully, not prolonged – seems inevitable. The main thrust of a Labour administration will the building of new homes – a million have been promised, with half social housing – and the extension of Help to Buy schemes likely to benefit young people. Labour has also promised to give locals priority over people from outside the area when it comes to buying new homes.”

Stephanie McMahon, head of research at estate agency Strutt & Parker: “When the general election was called seven weeks ago it initially looked to be a predictable result – but today’s hung parliament result reinforces that nothing is certain in these turbulent times. From a property standpoint, we know that investors don’t like uncertainty. However, uncertainty has become the new norm in both the UK and many other parts of the world, and the past few years have shown us that foreign investors are willing to take a long-term view when it comes to investing here thanks to the strength of our institutions and global transparency. It is also a significant blow for housing that Gavin Barwell, the author of the recent Housing White Paper, has lost his seat. Yet another new Housing Minister will need to be appointed and we will have to see if his work is continued.”

Jake Russell, director at central London estate agency Russell Simpson: "In the midst of another democratic disaster, I remain dismayed as to why an election was ever called. Since the referendum we've been desperate to bring a sense of calm and stability to the political spectrum to help alleviate doubts and worries shrouding the property market, however, all this has resulted in yet more doubt and instability Whichever way we proceed, we must ensure we have the strongest government possible to handle Brexit, it is imperative we negotiate a strong deal with the EU to make Britain an attractive investment destination."

Jason Rishover​Jason Rishover, CEO of London- and South East-based developer Heronslea Group: “This shock result means that all the uncertainty surrounding the housing market and the lack of confidence in buyers will continue. The country will not have a clear direction for some time, and it will be time consuming and challenging for both parties to agree on policies. Brexit will now be much more problematic.”

Russell Quirk, founder and CEO of eMoov.co.uk: “As we awake today to the opposite of a strong and stable administration but to a rather unexpected hung parliament, I fear that the property market’s post-election return to normality that I’d hoped for may be rather further away still. In addition to the prospect of Theresa May being forced out for grabbing humiliation from the jaws of victory, we will also see yet another housing minister in post by next week given that Gavin Barwell has just lost his Croydon Central seat. That’ll be our sixth housing minister in almost as many years. Regardless, I suspect that the housing brief will take a back seat now, despite politicians’ promises in recent weeks, given the combined weight of negotiating Brexit, stabilising our economy, button-holing political support across the aisle on every vote and, inevitably, campaigning again for the next poll."

Julian Goddard, partner and head of residential at City of London property agency Daniel Watney LLP: “The last thing the London housing market needs right now is more uncertainty. House prices are stagnating and transactions falling, and without knowing the future direction of travel buyers and sellers are likely to hold off, compounding the problem. No doubt many voters were seduced by Jeremy Corbyn's promises on housing, including rent caps and mass housebuilding by local authorities, but the reality is most of his promises are unrealistic at best or dangerous at worst. Countless cities across the world have experimented with rent controls, and they have all ended with less and poorer-quality rental homes. Meanwhile big question marks hang over whether councils have the capacity, resources or know-how to return to house-building as major players."

Michelle Niziol, managing director of IMS Property Group: “Any newly formed government will need to work closely with organisations within the property industry and other sectors to deliver a successful housing strategy for the years to come. More affordable housing to buy and rent, a reformed stamp duty system so that sellers take on the cost rather than homebuyers, and measures to speed up housebuilding and delivery of infrastructure, should be high on the housing agenda of any government.”

Anthony Rushworth, CEO of crowdfunding website Homegrown: “The hung parliament result will have an impact on both the housing market and economy. All parties have been committed to increasing housebuilding in the UK, which will boost the construction industry. It will take time for new policies to be introduced and agreed on. We’ve been here before though, and while it may take a bit longer, we will find solution.”

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