Election result has led to market turnaround says Savills

Savills says the decisive General Election result appears to have suddenly turned the market around and gave “a strong close to the year as confidence to transact returned.”

In a trading statement ahead of its full year results in March, the company - which has a significant majority of its activities based in the commercial and overseas markets as well as in high-end residential in the UK - says its full-year figures will be at the upper end of expectations.

This follows an “excellent performance” in the UK, growth in the US and the strength of its investment management business.

While the company remains cautious over potential Brexit problems as trade deals are negotiated, the big political worry for Savills worldwide has been political unrest in Hong Kong, which reduced the volume of trading activity from the middle of the year onwards, and is continuing to have an effect.

As a result Savills warns shareholders that its Asia Pacific performance is likely to be below expectations. 

"Looking to the year ahead, increased political stability in the UK should maintain improved sentiment in real estate markets. Global investor demand for secure income, restricted supply and expectations of continued low interest rates suggest that the medium and long-term dynamics of the UK real estate market should remain largely positive" the company says.

"Nevertheless, some caution may remain until the full impact of Brexit is better understood. Certain other global markets continue to be overshadowed by macro-economic and political uncertainties. As a result of these factors, at this early stage in the year…expectations for 2020 remain unchanged."