The general election has not created the decisive result the Conservative Party wanted, but it is unlikely to slow down the commercial property market, says a leading consultant.
The government could make changes to the economy, but according to Knight Frank real estate consultancy, any changes are unlikely to affect the commercial property prices.
Due to the current weakness of the pound, overseas investors are likely to continue to invest in UK property. A spokesman for Knight Frank was quoted in a June 2017 TheEdgeMarkets.com article as saying:
“We expect little or no impact on pricing, there should be upside further down the line via the realisation that ‘hard’ Brexit is receding as a likelihood and that the weaker pound has made the UK more attractive to overseas investors.”
Knight Frank reported that industrial property had seen the largest rise in prices during the last year. After the EU referendum result, there was a fear that some companies would leave the UK and this caused concern in the office property market. Knight Frank note that this has not happened yet and there has been no decreased demand for office space.
There is, as yet, no sign that the Bank of England will raise its base rate. This means that commercial property investors should be able to access commercial mortgages at reasonable interest rates.
The Conservative Party has pledged to build one million new homes by 2020 in an effort to satisfy the demand for houses both from homebuyers and landlords wanting to expand their buy-to-let property portfolios.