Stocks, property, bonds, the pound: Here’s what a new Labour government means for investing in the UK

The U.K.'s Labour Party won big in Thursday's election and is now set to take over from the Conservatives after 14 years, at a time when economic uncertainty is still rife in the country.

The U.K.'s FTSE 100 index climbed 0.4% as investors reacted to the election results on Friday, while the British pound made only light gains. The FTSE 350 household goods and home construction index was up about 1%. Looking at individual stocks within the sector, Persimmon shares rose 2.9%, while Taylor Wimpey, Barratt Developments and Bellway were all up roughly 2%.

Interest rates remain elevated in the U.K. as the central bank has battled high inflation following the Covid-19 slowdown. The two main political parties ran on different economic and financial manifestos during the election campaign that would likely have different consequences for the investing environment.

The Labour party's pledge, for example, to increase taxes on the compensation that private equity fund managers received raised a few eyebrows, and led to questions on what this could mean more broadly.

Speaking to CNBC, a selection of experts weighed in on the potential impact the change of government could have on U.K. investment.

The arrival of a new Labour government hasn't moved markets all that much yet but analysts expect U.K. assets to become more attractive from here on out.

In a note Friday, analysts at Jefferies said, despite concerns raised by a strong showing for the right-wing Reform UK Party, the Labour Party's U.K. election win would help make the U.K. appear "relatively stable."

This, in combination with regulatory reform, "could raise the attractiveness of UK assets," Jefferies' analysts wrote in a research note.

James McManus, chief investment officer at