Could the General election boost the commercial property market?
The decision to call a snap General Election could provide a long-term boost to the economy, according to a Bristol-based commercial property expert.
Tim Davies, head of Colliers International, stated any initial market concerns resulting from the surprise announcement by Prime Minister Theresa May would be minimal considering the strength of the South West economy. Reactions from the financial markets suggest the news has been positively received.
He said: “The announcement of a General Election in June caught many by surprise, but Theresa May saw the opportunity to drive home the strong position that she and the Tories hold.
“If the outcome is the ‘bluewash’ that is being predicted, it will facilitate Brexit negotiations and will give a shot in the arm to the economy.
“Initially, continued uncertainty might slow things down but the market is so buoyant in the South West that this might be a one week blip.
“It was certainly our experience in Bristol after the Brexit vote that deals that were already going through went ahead regardless of the wider political picture.
The long-term economic effects of an election are also held by the director of research and forecasting, Walter Boettcher.
He said: “A new date has been entered into the European calendar of uncertainty. However, the long-term benefits of a clear governmental mandate to investors and occupiers will far outweigh the short-term hiatus in decision making that is likely to follow this announcement.
“Solid deals, already in progress, are likely to progress. New deals may slow between now and the election.”