Three Ways Trump Could Influence the Local Property Market
Next Monday (January 20th), Donald Trump will be inaugurated as President of the United States of America for the second time. And whether you love or loathe him, there's no escaping from the fact that he's one of the world's most powerful men (again).
Below are three ways President Trump's policies might affect the housing sector on this side of the Atlantic
1. Mortgage rates and borrowing costs
Trump's economic policies could affect global financial markets, indirectly influencing UK mortgage rates. If market stability is maintained, borrowing costs may remain relatively low. However, unexpected turbulence could prompt the Bank of England to adjust rates, making it essential for homeowners to keep an eye on trends.
2. Energy costs and efficiency
Under Trump's policies, changes in global energy markets could influence UK bills. Trump has promised to ‘drill baby drill’ to increase oil and natural gas production and bring energy costs down. However, many energy experts argue it would take years for new projects to get up and running and significantly influence prices. British homeowners may opt to invest in energy-saving upgrades like insulation or solar panels instead. These improvements could reduce costs and enhance a property's appeal to future buyers.
3. Increased investment in the UK
In the aftermath of the US election, estate agents in high-value areas in London and Oxford reported an increase in inquiries from left-leaning wealthy Americans looking to move to the UK. If Trump’s time in office turns out to be turbulent, more high worth individuals may opt to re-settle in Britain – providing a boost to prime residential markets.
Control What You Can
Global politics is unpredictable, and President Trump is unpredictability personified, so what can UK homeowners and movers do to feel more in control?
Well, the UK housing market has shown incredible resilience over the years. It's been hit by Brexit, Covid and cost of living crises, all things ordinary people have very little influence on. Yet it still grows, as does demand.
If you’re considering selling in 2025, the best things you can do are:
· Choose an experienced local estate agent with a track record of selling homes like yours.
· Market your property with a realistic asking price – overvalue at your peril, undervalue at your expense.
· Remember that no matter what is happening in the world, a well-presented, cleverly marketed home with an accurate price that represents good value will always sell.
Whether you're thinking of selling, buying, or simply planning ahead, we're here to help you make well-informed property decisions.
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