Next week, Britain will head to the polls for the third major democratic vote in as many years. Following the 2015 General Election and the EU referendum last year, the fast-approaching day – Thursday 8th June – takes on huge significance, with the victorious party responsible for overseeing the country’s withdrawal from the European Union.
On Sunday, Kuflink’s CEO Tarlochan Garcha appeared on talkRADIO discussing how the upcoming General Election is impacting the UK’s community of investors and property buyers. Featuring on The Week with Daisy McAndrew, Tarlochan discussed how landmark political events will typically trigger speculation and caution within the financial markets, and how this has impacted investor sentiment in today’s Brexit-dominated climate. Kuflink’s own research was cited as evidence of this; our recent survey of 1,100 UK investors found that 38% of investors are awaiting the outcome of Thursday’s election before making any notable financial decisions, and a further 34% stating that Brexit has impacted their investment decisions more than any other event in their lifetime.
While some investors put their plans on hold, the majority are still continuing with their investment strategies unabated, turning to traditional asset classes that hold historical value to counter the uncertainty associated to the recent political events. Encouragingly, the UK’s property market has remained resilient, with average asking prices for homes in the UK hitting a record high of £317,000 in May. Furthermore, new research has predicted that property prices across the UK will rise by a further 6.1% in the next five years.
Kuflink’s latest report – Peer to Property – revealed that investors are turning to property in light of Brexit uncertainty, with 38% of investors favouring this asset due to its strength and stability in times of transition. As such, with Brexit negotiations commencing just 11 days after the General Election, a significant responsibility lies with the successful party to ensure the continued growth of the property market, ensuring investors are supported fully in a time of critical transition.