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London's housing market may benefit from Trump, insist estate agents

Estate agents and market analysts have spent 24 hours expressing their nervousness over the repercussions of Donald Trump's victory in the US presidential election.

However, some believe that an indirect consequence of the shock result may be an influx of American buyers in London - and possibly some moving there permanently as a result of Trump's policies.

"We're likely to see a further period of uncertainty because [Trump] will not be able to take any decisive action until he assumes power in mid-January" warns Jeremy Leaf, north London estate agent and former chairman of the Royal Institution of Chartered Surveyors' residential faculty.

"The knock-on effect on Sterling and the FTSE inevitably has an impact on confidence here at a time when we’re already nervously anticipating the fall-out from Brexit. At the very least it looks like we will have fewer transactions, tighter lending criteria, less housebuilding and higher rents – which is exactly the opposite of what we’re looking for at the moment" warns Leaf.

His concern is shared by others in the industry.

“We're likely to see some wealthy US citizens, particularly those most offended by Trump, move to the UK as some of our American clients hinted to us prior to this outcome. Foreign buyers, particularly from the Middle East and of Muslim faith, may enter the London market, too, as they decide not to buy property in the US due to his remarks about banning Muslims from entering the country” says Camilla Dell, managing partner at Black Brick buying agency.

However, it is clear many agents believe there is an opportunity for the struggling prime central London market to exploit the result and Carter Jonas claims it was contacted by many wary Americans in the build-up to the poll.

"Keen to shelter from any ensuing political and economic upset, a number of buyers registered with us in advance during the presidential campaign, with a view to progressing their purchase following a Trump victory. Now that has happened, it is likely that a number of them will follow-up on their initial interest" insists Tim Macpherson, head of residential for Carter Jonas London.

Jean Liggett, Ohio-born chief executive of the UK's Properties Of The World, says Trump's success may lead to significant stock market destabilisation, 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. Under Trump's stewardship, 'predictable' may need to be removed from the US English dictionary for the next four years. Only time will tell how the US property market - and others around the world - respond to his election victory" she says.

“For Americans terrified of Trump, it’s worth considering a move to London. While the Capital’s house prices have risen 13 per cent year-on-year for domestic buyers, those using the dollar will find homes in London are almost 10 per cent cheaper than a year ago" says Nick Davies of London agency Stirling Ackroyd.

  • Trevor Mealham

    Trump, like him or loath him has built his fortune on property deals.

    It's a Shame the UK doesn't have MPs who understand the market in the way the Yanks new leader does.

    The only market likely to suffer will be the Cuban one where Obama built relations which will likely move backwards which Trump said a few months back.

    Will Trump getting in affect the UK property market. Unlikely.

    Spencer Fortag

    Couldn't agree more about the UK not having MP's who understand the market. I have commented before that what we really need is a business/housing minister from the commercial sector. Someone with real-world experience.

    I doubt many Americans will jump ship and equally doubt that many of Trump's promises will come to fruition. Can you really see Congress authorising the $bn's needed to build a a wall?! Imagine that, a lying politician...

     
  • icon

    Nonsense article.

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