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News Release

London

Election result brings further uncertainty to UK housing market

Jones Lang LaSalle Reaction to the 2010 General Election Result


London, 7th May 2010 – Jones Lang LaSalle has released a report outlining the implications of the result of the General Election on the UK’s housing market, following which no political party has been able to form a majority government. The report outlines that uncertainty around a hung parliament and unclear policy implications will act as a brake on any further recovery of the residential sector with prices to remain static or decline in some areas over the short term, while transaction volumes will be affected in the majority of markets.
 
The report, which provides a matrix of leading housing policies for the key political parties, highlights the high-level housing issues which will be subject to scrutiny under the new administration:
 
    * Public spending cuts/public sector job losses

    * Targets for house building starts/completions

    * The financial treatment of empty homes

    * Cutting council housing waiting lists

    * Support for the private rented sector

    * Planning control nationally/regionally/locally

    * The housing powers of the London Mayor
 
James Thomas, Head of Residential Investment and Development at Jones Lang LaSalle, said: "The spring market is traditionally a time when volumes in the property market bounce and activity levels peak, however the result of yesterday’s general election will squeeze transaction volumes. Some sellers might choose to await clarity on the necessity of HIPS prior to marketing a property while some buyers will await a further possible stamp duty review.  For developers, the ability to expediently process planning applications will be inhibited further as the power of centralised planners versus local councils now hangs in the balance.  For many employees in the public sector, the imminent spending cuts pose a significant threat to their remuneration and job security.
 
“There will be a long list of repercussions after today’s result, and transparency and detail on housing policy is crucial: the sooner this can be provided the better.”