Early indications from results in the exit polls and first two results show a swing to the Conservatives but without a sufficient number of seats to form a majority.
For Conveyancers that could potentially result in political and economic uncertainty. Initially Gordon Brown may remain as Prime Minister until he resigned or was able to form a stable agreement with other parties. Potentially the Conservatives would seek agreement with other parties to enable them to create a majority Government. Protracted wrangling could have a negative impact on sterling and therefore short term interest rates.
Sterling rose on the basis of early results.
The residential property market needs economic stability to continue to further the tentative growth that has been seen over recent months so the hung Parliament prediction could be very challenging for all those employed in this sector. A Minority Government could result in higher interest rates due to a fall in confidence in sterling and the ability of the UK Government to service its debt.
The other question would be the future of Home Information Packs. With the Conservatives so clear that they would scrap them and yet the potential need to negotiate to form a Government results in a very uncertain picture. Would any of the other minority parties fight to seek them or would HIPs be lost in the horse trading and continue by default?
The results will continue through the night but it may be many days before there is a clear political mandate.
