After a whirlwind seven weeks of campaigning, yesterday Britons voted in one of the most significant elections in decades, resulting in the surprise outcome of a hung parliament. With the incumbent Conservative Party losing 12 seats and in doing so, its majority, the major political parties will now seek to form parliamentary coalitions or more informal governing structures with the smaller parties in Westminster.
What is a hung parliament?
When no party holds more than half of seats in the House of Commons following a General Election, the result is declared as a hung parliament. The largest party is most likely to form a coalition or minority government.
What are the potential outcomes?
- As the largest party in the hung parliament, the Conservative Party will have the first opportunity to form a new government. The Prime Minister is currently negotiating an agreement with the Democratic Unionist Party (DUP) of Northern Ireland after receiving permission from the Queen to form a government
If a Conservative-DUP coalition fails to materialise, the likely courses of events is:
- By the time the new Parliament meets for the first time on Tuesday 13 June, Theresa May must declare whether she has reached a deal to form a government – if she has not, it is probable that she will resign
- If Mrs May does resign, Labour Party leader Jeremy Corbyn may be invited to form a government either as a minority or in coalition
- Brexit talks, scheduled to begin on Monday 19 June, could be delayed and another General Election could be called
Maintaining support for the private sector and property market
Research ahead of yesterday’s vote showed that there was resounding confidence among Britons in the country’s long-term economic future; a mere 26% of UK adults think Brexit will have a negative impact on the economy. As such, while Westminster works to form a new government, it is essential that this positive sentiment is not lost – in what has been a year of momentous shocks in British politics, the next government must take swift action to provide clarity and direction for the UK economy, and in particular to support the country’s world-renowned property sector.
To support in this agenda, MFS launched FlipFinance2017 – a £20 million funding initiative to support the nation’s budding property investors and landlords in their fledgling investment projects across the UK. This industry-first property investment drive, as featured in FTAdviser, will target refurbishment and restoration projects, tapping into a staggering 1.4 million empty homes across the UK in order to catalyse greater movement across the real estate market.
Click here to find out more about FlipFinance2017.