Politics and Property
By Lindsay Kinnealy,
Head of International Property at Slater and Gordon
P
roperty is universally recognised
as a driver for economic growth so
it is no surprise that a country’s real
estate and politics go hand in hand.
Where there is political and economic
instability or uncertainty, buyers
become jittery and more prone to
exercise caution. This is because the
ultimate cost of an investment can
be difficult to quantify and the major
concern for many at election time
relates to the possible tax implications of a new administration.
Pre-election apprehension apparently
caused a slow-down in the UK with
investors, buyers and sellers awaiting
the outcome of the poll before
committing themselves to a project.
And, whatever one’s personal affiliations may be, it cannot be denied that
greater political certainty appears
to have a beneficial effect on the
property market both at home and
abroad. Since the UK election in May,
reports indicate a renewed confidence and buoyancy in the previously troubled real estate waters.
The economic stability of the UK has
long been an attractive inducement
to overseas buyers and a majority
government result has given overseas investors the sense of certainty
and security they were seeking.
Within just days of the ballots
closing and the first majority government in years taking office, a surge
in high end deals in London was
reported. Many buyers cited their
earlier concerns over the potential
“Mansion tax” on £2 million plus
value properties as their reason for
holding back but now it appears
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