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Well the results are in! And it seems that we are nowhere near being any closer to finding out who is going to be prime minister or which coalition will form the government.
There is still much to be resolved between the three main political parties and it has emerged today that David Cameron has offered a deal to the Lib Dems to work in government together.
Whatever the outcome, we can be certain of the new government having to make deep cuts in public services and there will be an increase in taxes in some way. These two factors alone will have perhaps the biggest impact on the property market and estate agents across the country and in London.
The recession has lead to an increase in unemployment, many people have had to freeze or reduce incomes substantially, and energy for the home and transport has become more expensive than ever, government borrowing at epidemic levels, the expenses scandal, the war in Afghanistan - the list goes on and on and it adds up to a lot of money!
With over 50% of the UK employment market in some way connected to state operations and the public sector, there is the potential for significant job cuts in the short to medium term which would impact upon general economic activity and demand for houses.
In addition to this the government will still have to push through as many efficiency savings as possible. Unfortunately the uncertainty and negativity associated with a hung parliament can permeate the markets and we simply end up talking ourselves out of buying or renting property.
In regard to London specifically, trying to find property to let or buy is already a massive challenge. The capital is well behind its target of the number of new homes being built. Demand is vastly outstripping the supply and it is unlikely that the new government will be able to reverse it any time soon.
Rentals and Sales - The Wimbledon Estate agents
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