It would be a mistake to believe that the outcome of the US presidential election will have no effect on the UK economy, because there will be a ripple effect.
Post-Brexit, the British economy is more linked to the US than it has ever been. If Trump wins a second term, there is already speculation we could expect a period of volatility in the currency markets.
His preference for deregulation and low interest rates could weaken the dollar. Time will tell.
But one thing is for sure, a weaker dollar would impact exporters and organisations with US operations, while fluctuations in interest rates may affect the appetite for property from foreign investors.
The US election results could impact UK homeowners
PA
Foreign investment plays a significant role in the UK property market, particularly in prime central London locations.
The glamour of the city, its connectivity and famous educational institutions will continue to attract high-net-worth individuals whatever the outcome.
The property market in London has proved time and again that it has staying power in times of geopolitical uncertainty. The outlook outside the capital is less certain.
Trump advocating greater political influence over monetary decisions could affect foreign investment flowing into the property sector, however, potentially hitting large commercial developments and US investment in the housing market.
His backing for the use of fossil fuels could attract investment into industrial and commercial schemes related to energy production and the extraction of natural resources.
If he does follow through on his threat to withdraw US funding for NATO, this would place further pressure on public finances, as the government would be forced to make up the shortfall.
That would have a potential impact on funds earmarked for the Labour government’s ambitious plans to build 1.5 million new houses.
The election of Kamala Harris may also have a similar effect, as she is expected to pressure European countries to up their spending on defence to the benefit of NATO and Ukraine.
If she won, however, it’s likely there will be greater stability in international markets which could benefit the housing market. There also should be less volatility in currency exchange rates and a more predictable flow of foreign investments.
That could boost demand for UK property, particularly those that are associated with better environmental and sustainability standards.
Property expert Jonathan Rolande is the founder of House Buy Fast and lead spokesman for the National Association of Property Buyers. For more information visit www.jonathanrolande.co.uk.
