There was a sigh of relief in the property industry on Monday as Theresa May emerged as the sole candidate to become the UK’s next prime minister.
“We finally have the next leader in place, so we can get on with negotiations and get some certainty,” a City agent said that afternoon, as frozen retail funds began to sell-off major assets.
“Brexit means Brexit and we are going to make a success of it,” May said in her first speech as prime minister designate, promising not to trigger Article 50 of the Lisbon Treaty before the end of 2016.
British Property Federation chief executive Melanie Leech said: “May must consider fully how changing regulations around the free movement of people, financial regulation and energy and environment policy will affect industries such as real estate, which play a vital part in supporting the UK’s social and economic infrastructure.”
Theresa May – what we know so far
- Kinder capitalism
May wants to change how “big business” is governed. To achieve that, she said she wants to put worker reps on company boards and impose tighter rules on executive pay, citing the “irrational, unhealthy and growing gap” between what FTSE companies pay their workers and their bosses. - One nation
May has hinted that she will promote regional growth to create a “country which works for everyone, not just the privileged few”. She said there was a “gaping chasm between London and the rest of the country” and noted that it was “harder than ever for young people to buy their first house”. - Tax changes
May said she wants to make tax changes to help spread wealth around the country and acknowledged slow wage growth since the 2008 financial crash. “Monetary policy… has helped those on the property ladder at the expense of those who can’t afford to own their own home,” she said.
On the Northern Powerhouse, Peter Tooher, executive director at Nexus Planning, said certainty around infrastructure investment was critical to driving forward development around transport hubs such as HS2 stations.
And on housing Tony Brooks, joint managing director at Moda Living, said investment in the private rented sector would be a welcome boost. He said: “Simply building more homes for sale is not the solution – there is an on-going shift in the way we live and many have come to value the flexibility of renting, so delivering quality homes for rent is key to addressing the UK’s housing shortage.”
Jane Hollinshead, principal at IJD Consulting, said May should bring in a “rates holiday” for new development.
Listen to Cushman & Wakefield’s Colin Wilson discuss May’s agenda below
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