What a Trump victory could mean for the London property market
26 October 2016
With Prime Minister Theresa May focused on a hard Brexit and Chancellor of the Exchequer Philip Hammond warning that there are two years of uncertainty ahead, it is not clear how things will play out for the London property market. While there is plenty of uncertainty, what one can say with relative confidence is that Donald Trump is not viewed as a safe pair of hands. If he does become US president, he will be a long way from Barack Obama in terms of his ability to calm a fragile global situation, and it could turn out to be another blow for the housing market. Like all markets, property is highly sensitive. It would be of considerable concern if Trump were pulling the strings of such a global power. It’s a problem the housing market doesn’t need when it already has to deal with the UK leaving the EU. What it would do to global sentiment is likely to be nothing short of catastrophic.
If Hilary Clinton were to win, on the other hand, it would be business as usual. While many voters have their issues with her, and she isn’t regarded as the perfect candidate by any means, on the whole she would be seen as a safer bet as the markets don’t like uncertainty. But we can take nothing for granted: while it was generally expected that the referendum result would mean us staying in Europe, look what happened there. In short, anything could happen in the race for the White House.
Will we see planeloads of Americans flocking to the UK if Trump wins? It’s unlikely, particularly as it is not clear what is happening with the job market as a result of Brexit. But we are already seeing many more Americans than has been the case in a long time over here looking to buy property because of the weakness of the pound against the dollar.
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