Developed in conjunction with Ext-Joom.com

Select language / 语言选择
English中文
A+ A A-

CONSERVATIVE WIN SPELLS GOOD NEWS FOR UK MARKETS

UK property market sees upsurge following decisive Conservative win

On May 9th, the British electorate delivered a wholly unexpected majority to the Conservative party. Right up until the polls closed, it seemed highly unlikely that anything like a conclusive result would emerge. As the polls remained deadlocked, uncertainties intensified and concerns for the economy began to weigh on the prospects for continued economic recovery. The UK residential property market seemed particularly vulnerable to these uncertainties and in the run-up to the election, there was clear evidence of buyers holding off, to the extent that in many parts of the country, transactions almost ground to a halt.

Had the Labour party won, it would have had marked negative impact on residential property markets across the UK. Labour had concocted a range of micropolicies in direct relation to housing and residential property markets that would certainly have been disruptive to say the least. A flagship policy was the so called “Mansion Tax”, an old fashioned wealth tax that would have imposed an annual charge on all properties valued over £2 million. Most of such properties are concentrated in London and risked stalling the market on anything above £1.5 million.

Labour promised to abolish the non-dom status whereby foreigners could live in the UK and only pay tax on their UK earnings so long as they paid any tax due overseas. It was an appeal to fairness by Labour but ignored the raft of economic benefits of this wealthy cohort to the UK not least that they pay a lot of tax. The Conservatives on the other hand were seen as offering competent stewardship of the nascent economic recovery, a continuation of the long term economic plan towards deficit reduction and were regarded as business friendly and champions of enterprise.

In addition, policies related to housing were regarded as broadly

positive such as the continuation and extension of the “help to buy” scheme, an extension of the mortgage guarantee scheme to help first time buyers and the introduction of a “help to buy” ISA (individual savings account). A majority conservative government is certainly a good outcome for the residential markets in London and beyond on both a macro and micro level.

The financial markets immediately indicated their approval and have remained buoyant ever since. Immediate press comment with regard to property was positive but now nearly a month later, we can see just how much the uncertainty and concern was holding the markets back. Agents across the UK are reporting an upsurge in activity and one UK daily announced this week that asking prices are up an average of 17% since the election result.

In conclusion, the unexpectedly swift and decisive outcome of this election has done much to lift the clouds of uncertainty and unpredictability that have been a feature of the property market for the last six months. We still consider that many parts of London have reached levels where affordability will, for the time being, limit further upside.

The Conservative victory will however, provide fresh and firm impetus to the growth themes we have identified in our article last month and on which we are focusing with our investors. For neighbourhoods that are undergoing positive transformation as a result of rapid regeneration/gentrification, new infrastructure or an influx of buyers from more expensive areas, the election result could well add an additional 10-15% to growth over the next 5 years.

 

 

Paul Woodward is Managing Director of The Real Asset Boutique, a specialist in property investment and management in the UK, especially London.

He can be contacted at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Source: Asianpropertyreview.com

 

 

 

September 22, 2015

RETAIL REVOLUTION IN HISTORIC MALACCA

in Swhengtee Article by marcus
Malacca’s biggest tourist ‘Village’, Freeport A’Famosa Outlet Village (FAOV) is set to provide the very best retail experience in an exceptional setting – with prices at a bargain everyday. Steeped in history and rich with remnants of the European colonial era, Malacca is a small province with a…
Sep 22, 2015 4585

TIPS FOR BUYING RESIDENTIAL PROPERTY IN VIETNAM

The Vietnamese property market is enticing more and more investors since its liberalisation in July. We zero in on several aspects that the foreigner…
Aug 21, 2015 3154

PART 2: RELATIONSHIP IS KEY TO BEST DEALS

Building and maintaining a relationship with Japanese realtors is key to getting the best dealsCongratulations – you’ve followed the advice laid out…
Aug 21, 2015 2988

CONSERVATIVE WIN SPELLS GOOD NEWS FOR UK MARKETS

UK property market sees upsurge following decisive Conservative win On May 9th, the British electorate delivered a wholly unexpected majority to the…
Aug 20, 2015 2393

THE SUN RISES – AGAIN

There is a seismic change in investors’ attitude towards Japan as ‘Abenomics’ takes hold and this is reflected in the rising foreign appetite for…
Aug 20, 2015 1338

PART 1: INVESTING IN JAPAN FOR FOREIGNERS

Local native representation is essential to penetrate the Japanese market As mentioned in our article in the inaugural issue of Asian Property Review…
May 26, 2015 1617

Property consultant: Market to see upturn in 2016

Property consultant: Market to see upturn in 2016 A lot of negativities have already been factored in this year; at some point, pent-up demand will…
May 21, 2015 1530

Asian Property Review magazine debuts

Asian Property Review, a new regional property magazine has a mission to highlight the best of Asia in terms of places and people, says the founder…
Aug 07, 2013 1499

RM5,000 per sq ft for a KLCC penthouse?

19 April 2013| last updated at 04:08PM FOCUS: RM5,000 per sq ft for a KLCC penthouse? By KHAIRUL KHALID SKYROCKETING PRICES: Prices of high-end…
Aug 07, 2013 1321

Upward momentum after general election

07 March 2013| last updated at 06:11PM FOCUS: Upward momentum after general election By KHAIRUL KHALID MORE ACTIVE: Although a period of adjustment…
Aug 07, 2013 1480

The international factor in property hotspots

FOCUS: The international factor in property hotspots By KHAIRIE HISYAM ALIMAN CROSS-BORDER LINKS: Gavin Tee talks to NST RED about his top 10 choices…
Aug 07, 2013 1635

Greater KL tipped to be world’s rising star within 3 years

FOCUS: Greater KL tipped to be world’s rising star within 3 years By JAN YONG INVESTMENT MAGNET: Many favourable factors will converge to push…
Aug 07, 2013 1499

‘Southeast Asia property market to surge within 10 years’

Part 2 – ‘Southeast Asia property market to surge within 10 years’ By JAN YONG HUGE UPSIDE: Many factors lead to the ascendancy of SEA in the world’s…
Feb 04, 2013 2845

A Tougher Year for Property Investors with Abundant…

Gavin Tee: 2013 – A Tougher Year for Property Investors with Abundant Opportunities Across the globe, both developed and emerging countries are…
Jan 29, 2013 2815

Golden age for property investment

Source: PropertyGuru Malaysia By Farah Wahida:Malaysia’s real estate sector is rife with opportunities for investors, although the government is…
Jan 25, 2013 2614

‘Golden Decade’ for property investors

MAJOR SHIFTS: Despite the credit crunch and economic uncertainties worldwide, most experts during a recent seminar see a silver lining in the third…
Jul 02, 2011 3393

Malaysia, An Attractive Asian Property Market

Highly Attractive City Centres, mega projects and tourism areas are poised to become investment hotspots in Malaysia, aided by resilient Asia's…
Feb 18, 2011 6709

New MRT in Kuala Lumpur augments properties

The new MRT in Kuala Lumpur offers a great opportunity to property investors, particularly through the 9-km underground stretch, around Bukit…
Jan 13, 2011 4871

Malaysia Real Estate Outlook for 2011

Gavin Tee: The Best and the Worst, All in 2011 Kuala Lumpur - The real estate market had gone through a roller coaster ride in the recent years, from…
Aug 18, 2010 3010

Oil price rockets high

Best Time to invest in Property The sharp increase of petrol and power prices is expected to have a great impact on the real estate market with…
Aug 18, 2010 4167

Kuala Lumpur in the Forbes Top 10 List of Emerging Markets

Forbes recently released a list of top emerging world real estate markets that is based on in depth studies. By looking at inflation rates, access to…

bfm radio interview

Feature Video

Our Media Partner

 
 

© 2015 Swhengtee International Investment Alliance. All rights reserved.

29-5, The Boulevard, Lingkaran Syed Putra,
Mid Valley City, 59200 Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur

Phone: 603-2288 8588
Email: info@swhengtee.com.my
powered by Myonline Solution