ALTHOUGH the surprise election result has caused uncertainty, which businesses hate, experts believe it may bring long-term benefits for the economy.

Sterling touched its lowest level since April 18, the day Prime Minister Theresa May called a snap election and the pound was also weaker against the Euro, softening by 1.2 per cent, with £0.8762 required for a unit of the shared currency.

Howard Crossen, head of investment management firm Brooks Macdonald’s Hampshire office, said: “In time, declining sentiment could translate to weaker economic performance if it causes large multinational businesses to reduce their UK investment or move their operations abroad.

“However, it is possible that the boost that prolonged sterling weakness provides to the competitiveness of UK-based businesses will continue to outweigh the negative effects of political uncertainty.

“Although various long-term assessments of the currency’s value, such as those made using purchasing power parity, show sterling as cheap at current exchange rates, there are many forces driving foreign exchange markets and we expect sentiment to keep sterling under pressure until political clarity improves."

Emma Eaglestone, lead director for the Southampton office of property consultancy JLL, said: “The result suggests that the hard Brexit that many were assuming would now definitely occur looks somewhat less likely. That could be a longer term positive for the UK market. “Sectors with long-term structural support, such as logistics and alternatives, will remain strong. If the pound remains weak, retail and hotels will benefit – alongside UK manufacturing. But as before, JLL continues to believe the UK offers significant opportunities for medium and long term investors.”

Commenting on the loss of his seat by Housing Minister Gavin Barwell, Ms Eaglestone added: “We are now facing the prospect of yet another Minister for Housing, the fourth in five years.

“Given the huge role that a high youth turnout has had in changing the political landscape, it must now surely be time for all parties to prioritise an issue that has had more negative impacts on young people than any other, and increasingly erodes the competitiveness of the British economy.

“The next housing minister must be an experienced and hard hitting political figure, and the role must be inside the cabinet. They must help develop a genuinely radical housing policy. Indeed, this should be seen as an electoral priority by all parties if the young continue to become more active at the ballot box.”

Bruce Potter, chairman of national law firm Blake Morgan, which has offices in Southampton, said: “The priority for the next Government cannot just be about Brexit; there will also be a need to show the UK political system as well as the economy is robust and adaptable even before tackling the most complex international negotiation Britain has faced since the Second World War.”