Head of Research Nicola Almond comments on the surprise election on 8 June
Today MPs backed Theresa May’s call for a general election on 8 June. Theresa May appealed to the British public to ‘put their trust’ in her, and to provide a firm mandate to create unity in Westminster in order to deliver Brexit.
Theresa May previously said she wouldn’t call a snap election, but with a working majority of only 17, and polls showing an increasing lead over Labour, the temptation proved too great. The latest YouGov poll gives the Tories 44% of the popular vote – almost double Labour’s 23%. The result of the election is therefore fairly predictable, and some commentators are predicting that the Conservative majority will increase to 100 seats.
The most obvious outcome of the likely substantial Conservative win would be to improve dramatically May’s room for manoeuvre in the Commons and to strengthen her hand in Europe. The absence of an election looming in 2020 (soon after the March 2019 Brexit deadline) will also provide greater stability.
On balance, this unexpected early election is forecast to be positive for the sterling and the economy, providing a government which is stronger and in a much better to position to negotiate the best Brexit deal for the country.
In the context of increasing global destabilisation, we expect London property to remain a safe haven for investors, despite some appreciation in the pound.
CEO Anne Currell says ‘A stronger government operating from a united position of strength can only be good for the economy and the property market’.