A RECENT ARTICLE FROM THE NAEA…
How Will a Trump Win Affect the UK Property Market?
Many questions were raised about the Republican candidate during his presidential campaign and what effect his appointment as President of the United States would have on the rest of the world.
But whilst many view Trump’s triumph as less than favourable, in terms of economic growth, could this be beneficial to the UK?
Donald Trump’s US election win could lead to a major boost in demand for London residential buildings, with wealthy people who would have considered a move to New York, in particular from the middle east, Europe and China, choosing to locate to the UK capital instead.
Nick Davies, Head of Residential Development at Stirling Ackroyd said: “The recent fall in the value of the pound against the dollar means there are great deals available in the London market. While the capital’s house prices have risen 13% year-on-year for domestic buyers, those using the dollar will find homes in London are almost 10% cheaper than a year ago.”
There has also been a great demand from US investors to move away from the American market. Trump’s election brings uncertainty, and with it, likely policy and party changes that investors will view as too risky for the markets.
Charles Curran, Principal at Maskells, believes that the US election will prove to be positive for the UK housing market and the wider economy.
He commented: “Sterling has already strengthened against the US dollar which, notwithstanding a potential [interest rate] hike in the US in December, may start reducing some of the post Brexit inflationary pressure in the UK.
“This is good for mortgage payers as it reduces the likelihood of the Bank of England’s hand being forced to increase rates to counter a strong dollar; the currency in which many of imported products are priced.”
Due to the long gestation period of the US election, the probability is that house prices in London could potentially rise until any fixed policies have been put into place by the new President-Elect.
