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The UK general election result has put pressure on the sterling and cast uncertainty over the housing market due to the Conservative party failing to secure an overall majority. UK Prime Minister, Theresa May, had gambled on her party securing a crushing victory but a surprise surge in popularity for Labour, the opposition party, has left the Conservatives relying on support from the minority Northern Irish Democratic Unionist party (DUP).
The talks over a “confidence and supply” arrangement (a mutual support agreement rather than a Coalition) between the Conservatives and the DUP have caused unease among some Conservatives due to the DUP’s illiberal stance on issues such as religion, abortion, climate change and LGBTQ rights.
Prime Minister May’s hand has been weakened as the party have demanded the removal of her unpopular joint Chiefs of Staff in return for their continuing support. She has been forced to retain Cabinet ministers previously slated for removal and to reinstate Michael Gove as environment secretary having sacked Gove last summer.
The uncertainty caused by these seismic events led to falls in sterling against the Euro and US dollar. Even though the pound has since rallied, the political turbulence from the election and the uncharted territory of Britain’s departure from the EU has led to the ratings agency Moody’s dangling the possibility of a “credit negative” rating for UK.
The Royal Institute of Chartered Surveyors have reported that uncertainty in the run-up to the election is already having a dampening effect on housing market activity. At UKIPP we believe presents an amazing opportunity to purchase UK property projects whilst the prices are low when purchasing from alternative currencies.