The UK General Election Result Creates Opportunity for Overseas Property Investors.

Election Result Creates Opportunity for Overseas Property Investors, as the uncertainty of a Hung Parliament has weekend the Pound. Overseas investors who are buying in dollar pegged currencies such as in the UAE have increased buyer. James Roberts, Knight Frank’s chief economist, said property investors should expect the pound to fall further over the next few days. Roberts also expects financial markets to be volatile over the same period which can create a buying opportunity for property investors. “However, there is actually an upside to the current election result from an economic and commercial property perspective,” he added. “The current period of uncertainty, and sterling weakness could present a limited window of opportunity for overseas property investors to buy in the UK. “This window could be very brief, as we expect greater realization of the advantages of the hung Parliament to spread as the summer progresses.” The British pound had a 1.6 per cent fall in value to US$1.27, in the session ending on Friday. The currency fell 11 per cent against the US dollar in the aftermath of the EU referendum last year; which led to a rise in enquiries from buyers in Dubai and GCC countries who have dollar pegged currencies. Roberts expects GBP to recover during H2; as the Conservative government is forced to abandon plans for a so-called “hard Brexit”; in favour of a more fluid deal with the EU. The Election Result Creates Opportunity for Overseas Property Investors, but it is likely a short window.

Housing Shortage

Uncertainty caused by a hung parliament is expected to limit the stock coming to the market. Therefore with the market so chronically undersupplied, this should provide a support for the property values, therefore preventing significant declines. “There’s no question that after the result that we have seen there will be a further pause in the supply side of construction,” Miles Gibson, head of CBRE UK research. “We saw that immediately after the referendum a lot of developers saying let’s just hold; we don’t know whether the demand is going to be there for new office space and new residential. Let’s just wait and see. We will continue to see that. “But paradoxically that may hold prices up and rents up because of course less supply, but the continuation of demand coming from a strong economy means that rents and prices may well stay stable.” For property investors in the UAE & Asia, the fall in the value of the pound would make investing in UK property cheaper. However, the value of the pound is still higher than it was a few months previous; The election result creates an opportunity for overseas property investors who are still very keen to buy property in the UK. Click Here to view our latest Property Opportunities Read More: Chinese Property Investors Keep Buying UK Property Despite Brexit