With the U.K. general elections now just around the corner, many UK professionals involved in its property sector are voicing their concerns of the consequences of a Labour-led government. The Estates Gazette states that “the Conservative’s pro-business outlook is likely to be more appealing than Labour’s punitive tax measures for foreign investors” and quotes a senior property agent as saying that Corbyn wants to re-nationalise pretty much anything, which will make everyone scared and foreign investors could become more negative on the UK.
The leading journal also quotes Savvas Savouri, chief economist at Toscafund Asset Management, who argues: “We could potentially see a strong uptick in occupier and investor demand with a Conservative majority and that the alternative is the reverse: paralysis.”
It’s no wonder that one of my clients recently told me that a lender he was looking to for a finance facility, would be willing to make a loan offer only if it contained a ‘Corbyn Clause’ – a condition that the offer would fall away should the Labour party win the election.
We can only wait and see how matters pan out on 12 December….
Article written by David Prais