Following Donald Trump’s victory in the US presidential election, estate agents and market analysts have been reviewing the potential repercussions for Britain’s housing market. Amongst some of the theories, some believe that an indirect consequence of this shock result may be an influx of American buyers in London – and possibly even more permanent American residents offended by Trump’s policies.
The election result, combined with a weaker Sterling post Brexit in June, has made London an attractive city for prospective buyers. However, it may not just be fleeing Americans that flock to London. Samuel Blake, Residential Partner at Montagu Evans, comments: “We consider that London could benefit from Trump’s policies. However, we believe the impact is likely to come, not from fleeing Americans, but from wealthy people who would have considered a move to New York City, in particular from the Middle East, Europe and China.”
Jean Liggett, Ohio-born Chief Executive of the UK’s Properties Of The World, says Trump’s success may lead to significant stock market de-stabilisation, but that London’s housing market may benefit.
“Investors [may] seek to migrate their portfolios from the US to a more secure and predictable market – the UK. This may even mean that the Sterling could rise in value. Only time will tell how the US property market – and others around the world – will respond to his election victory,” she says.
Ben says: “As with Brexit, I expect to see confidence in the housing market knocked slightly in the shorter term, but this will coincide with the quieter period over the festive season. However, I don’t expect to see this having any effect at the lower end of the market ranging from £80k to £300k, a slight slow down from £300k to £500k and a bigger drop off in properties over £500k. Says: Only time will tell how the US property market – and others around the world – will respond to his election victory realised. In the meantime, we’ve still got a burgeoning renting population that need to be housed right now.”
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