Christmas comes early for the pound; property market set to ‘turbocharge’ as Tories record landslide victory

The pound has surged against the dollar and is expected to continue to soar above $1.40, as the Conservative Party recorded a landslide victory in the General Election, with the property market also set to ‘turbocharge’.

With just two seats left to declare at the time of going to press, the Conservatives had a majority of 76, the biggest of its kind since the 1980s. Sterling gained 2.1% to $1.34 – its highest level since May last year, and the pound jumped to a three-and-a-half-year high against the euro

Nigel Green, chief executive and founder of deVere Group, commented: “The pound has enjoyed its biggest surge in a decade on the hopes that a solid Conservative majority can finally end the Brexit deadlock.

“Many traders were caught off guard by the size of the majority and this may push the pound even higher than previous predictions. We could see bullish traders now take it to $1.38 or maybe even as high as $1.40.”

He continued: “With more political certainty due to the large majority, the UK economy is also likely to receive an election bounce.

“Billions of pounds in business investment that has been on the sidelines due to the parliamentary paralysis is now ready to be unleashed. This will give a much-needed boost the slowing British economy.”

Commenting on the impact of the General Election result on the property market, David Westgate, group chief executive at Andrews Property Group said “such a conclusive victory has the potential to turbocharge the property market and get it out of its current rut”.

“The certainty that comes with a 5-year administration will create confidence and bring back the aspirational buyers and sellers that have been lacking since the EU Referendum result. For three years the property market has been gripped by political uncertainty and deadlock but now it can finally move on. 
 
“There’s every chance we are now at the beginning of a market cycle that may not peak until 2027 or beyond, with growth of around 4% a year. Let’s not kid ourselves that the housing crisis will be miraculously solved overnight, because it won’t.
 
“We now need a Housing Minister with a properly costed and fully structured long-term plan that looks beyond building a certain number of homes each year. The structural issues in the property market will still be there when the euphoria of the Conservatives has faded."

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