Specialist market reacts to election result
The Conservative landslide victory will give the specialist lending market a boost as pent-up demand is unleashed, members of the industry claim.
The Conservatives won a majority of nearly 80 seats in yesterday’s General Election.
Chris Whitney, head of specialist lending at Enness Private Clients, said: “I think this was the outcome most people expected and it will bring a sense of relief for many.
“Boris now needs to make short work of his ‘get Brexit done’ mantra and lift the uncertainty that we have had to work under for so long.
“Their spending plans will give the economy a boost but hopefully in a prudent manner.
“I think the specialist lending market will have a busy year ahead as lots of pent up demand from investors and developers spreads out into the market.
“I think as well as that we will see an increase in international demand from people holding back fearing an unfavourable Labour tax regime being levied upon them.”
Damien Druce, an independent specialist lending consultant (currently retained by bridging lender Interbridge), added: “I can’t see any effects for the housing market other than major positives, people holding back will now be looking to move.
“That pent-up demand will be released and hopefully we’ll be seeing a flurry of activity in the New Year.
“I think it’s good for every element of the mortgage market, whether mainstream residential or specialist lending like bridging.
“It will hopefully remove that pent-up frustration and allow people to realise their plans and there should be a massive upturn across a variety of sectors.
“I was absolutely thrilled with the result.
“We have a little more clarity about what the future holds.
“Everyone can get on with planning for the future post Brexit and hopefully the domestic agenda will be delivered on and that’ll be the focus from then on.”
Jonathan Samuels, chief executive of Octane Capital, said that the property market got the result it wanted.
He said: “After three years of stagnation, the extent of the Conservative victory could see transaction levels really pick up in 2020.
“The public braved the weather to cast their votes and on the back of that the property market can now finally come in from the cold.
“While the General Election result was decisive, the hard yards have yet to be done and the full impact of Brexit remains to be seen.
“Price growth in 2020 is likely to be a lot more robust than in recent years but what we don’t want is for values to suddenly get ahead of themselves.
“The property market will enter 2020 with a spring in its step but all eyes will be on how the economy holds up as we exit the EU.”
Guy Harrington, chief executive at property lender Glenhawk, said that certainty with Brexit in January is the tonic the real estate market has been waiting for.
He added: “Expect improved liquidity, greater transaction volumes, a stronger pound and a bounce in the housing market, all of which will benefit lenders, investors and developers alike.”
Gary Bailey, managing director at Hope Capital, said that with this emphatic victory for the Conservatives it proves that the people of the UK want a swift end to Brexit.
Bailey said: “Focus, that has been held back for the past three years, must return to business and the economy.
“The aim must be an orderly Brexit, finding the right resolution to restore consumer, investor and business confidence.
“This result should be a huge boost to the UK property market.
“Now that parliamentary uncertainty has ended homeowner, business and investor confidence should return in 2020.
“The Prime Minister now has mandate to drive and deliver what the electorate and the economy need.”
Joshua Elash, director at MT Finance, said the result is an endorsement of the need for political and economic certainty.
He added: “This bold new Conservative government will drive the economy forward, while the threat of a radically left government has gone.
“We expect the housing market to benefit in the year ahead as everyone from first-time buyers to seasoned investors who have otherwise been anxiously waiting to see where we stood as a nation can now get on with their lives.
“We expect transactional volumes to increase significantly as certainty has been delivered.”
Terry Pritchard, director at Charter HCP, said: “Now the country has got the answer we needed let’s get on with the job in hand and hopefully get things moving in the right direction.
“Boris needs to show strong unwavering leadership.”