London property market faces more headwinds after election

LONDON: The UK election result will create more uncertainty for the London property market, affecting values and sales volumes, real estate brokers say.

London home builders that develop high-end homes dropped after the hung parliament. Crest Nicholson Holdings Plc dropped 6.7 per cent, the most in 11 months, and was down 5 per cent at 580 pence at 1.16pm, making it the biggest faller in the FTSE 350 Index. Berkeley Group Holdings Plc, the UK capital’s biggest home builder, was down 3.4 per cent.

Housing Minister Gavin Barwell lost his seat as Prime Minister Theresa May’s gamble on calling a snap election backfired. The Labour Party won support after it called for more affordable housing by local government after home values and rents soared and said it would suspend the right of tenants to buy discounted properties from the councils.

The UK’s housing crisis “deserves greater ambition and bold action from the new government,” said Adam Challis, head of residential research at broker Jones Lang LaSalle Inc.