It was the Conservative’s biggest victory since the days of Margaret Thatcher, winning 365 seats in the parliament, with the closest rival at 203. The voting majority took notice of Chancellor Boris Johnson’s call to “get Brexit done” and took action through the polls.
The resounding triumph was marked by the upsurge of the pound just hours after the announcement of the election results, a clear indication of a renewed confidence in the country’s economy.
As such, the people are looking forward to a:
* Majority-backed budget in February
* £100 tax cut for millions of workers
* Number of new policies to boost post-Brexit Britain
How does a stronger pound sterling affect the market?
Smaller, domestically-focused local stocks should be getting a healthy boost, however, a stronger pound could have a negative impact on the FTSE 100, the country’s blue chip companies, whose earnings’ greater bulk comes from overseas.
The weakened value of the British currency made overseas travel cost prohibitive, the rise of the pound however brings good news and better spending power for vacationers planning to travel abroad.
The uncertainty of the Brexit which has held investors back since 2016 appears to be coming to an end with Mr. Johnson’s majority backing, he should have little resistance securing the country’s departure from the European Union. And from the ensuing effect of the elections to the pound, the situation is likely to attract foreign investors who’ve avoided the unstable British stock market.
According to Richard Stone of The Share Centre, “The one consistent message from private investors has been a desire for certainty and a clear sense of direction.”
On the property market, David Ruddock of estate agents Carter Jonas said confidence should be returning, predicting that the Conservative majority is going to open “pent-up demand from people to sell…”
The call for elections caused the rising number of property instructions to drop. However, it is foreseen to turn around in the coming year, “relieving the logjam that has plagued the market since the referendum”.
Despite the uncertainties on the realization of Brexit, buy-to-let owners are relieved regardless of the Conservative Party’s stern measures on landlords because it is “the lesser of two evils for property investors” according to Gavin Dick of the National Landlords Association.