As Donald Trump becomes President Elect of the United States we take a look at the possible effect on the UK housing market.
To many, Donald Trump was a surprising winner of this week’s presidential elections in the USA. After the equally unexpected Brexit referendum result, we take a look at how this latest shock might impact on the UK property market.
Is the US Trump vote a positive for the UK housing market in the short term?
The vote by the British public to leave the EU was seen as a shock by many commentators and the same people thought it impossible that Donald Trump would be voted into power by the US electorate. It seems, with hindsight, that most of these commentators underestimated the desire of the people for change or the ability for Farage/Johnson and Trump to incite them to vote for it.
Trump’s election win has led to predictions of recession in the US, further right-wing political success in Europe and, by some more extreme doubters, World War III. Only time will tell whether these predictions come true, but recent events have proved to take “expert” opinion with a pinch of salt. One thing is for sure, nobody can be certain what will happen in the near future.
Such uncertainty could prove to be beneficial for the UK property market. While global investment markets remain volatile investors are likely to look for a safe bet and the UK housing market appears to be just that. To overseas investors, the weak pound only adds to the current desirability of the UK market.
In recent years investors have started to look away from London and there are some thoughts in the city that the London property market is overpriced (added overseas investment should increase stability of the market). As such, the Oxford property market seems to be a very attractive alternative. It was almost recession proof in 2008-2009 when prices stalled without dropping markedly, and prices have continued to increase since. The housing market is reliant on the University for demand and, as such, any potential recession will likely see minimal impact. While the council remains strict on granting planning consent supply is unlikely to increase and prices likely to stay strong.
To conclude, the uncertain global economic future looks like making the UK housing market a good option for investors, and in the UK there appears to be no better option than Oxford. So, if you are looking for help to find the right property investment then get in touch on firstname.lastname@example.org or by filling in a contact form here.
You can also read more about what makes the best investment property here.