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US Property Buyers Ready to Flee to the UK Following Election Result
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
UK estate agents are reporting booming interest from US property buyers looking to flee their country following this week’s presidential election result. Some property deals are already linked to the outcome of the vote.
One agent, Toby Cockcroft, the Director of Croft UK Real Estate, has seen inquiries rise by 50-60% this year, and is setting up a buying agency on the east coast of the USA to meet demand.
He says: “We have recently agreed sales on smaller-end £400,000-£500,000 properties from US buyers, and we are also retained to act for half a dozen who are looking to invest significant wealth by way of property.
US Property Buyers Ready to Flee to the UK Following Election Result
“Initially, there was lots of interest due to the pound, but the uncertainty over the election is putting the fear of god into Americans.”
He explains: “Americans are looking for stability and security, and, with the scariness and uncertainty that the election could bring, they are looking to set up shop elsewhere.
“The Trump factor is often the first thing that gets mentioned, but, either way, many Americans don’t think it’s great and aren’t sure about Clinton either.”
Carter Jonas has also reported sky-high demand in the capital. Tim Macpherson, the Head of London Residential for the agent, comments: “As Trump and Clinton continue their battle for the White House, inquiries from American buyers for property in prime central London are rocketing, and we have a number of deals linked to the election outcome.
“Buyers are in despair over the prospect of Trump as president – not just because they dislike him as a person or because they disagree with his policies, but because they think he will destroy the US economy.
“It’s of little surprise that the shrewd amongst them are acting fast to move their assets to the safety of the UK.”
He adds: “Indeed, there is much speculation that a Trump victory could create a bounce in London’s property market – particularly in areas such as Mayfair, which is the traditional heartland of US buyers.
“With the dollar performing with such strength against the pound, it could perpetuate the buoyancy that we’ve already witnessed across prime central London post-Brexit.”
The boom arrives as data from agent Stirling Ackroyd shows that the cost of the average London home has dropped by 9.2% for US property buyers over the last 12 months, due to the drop in the pound from $1.53 to $1.23.
Earlier this year, a Morning Consult/Vox poll of almost 2,000 registered voters found that 28% of Americans have at least considered leaving the USA if Trump is elected, with many citing Canada and the UK as likely destinations.
The Head of Residential Development at Stirling Ackroyd, Nick Davies, states: “For Americans left cursing Clinton or terrified of Trump, it’s worth considering a move to London. The recent fall in the value of the pound against the dollar means there are great deals available in the London market for buyers from across the Atlantic.
“While the capital’s house prices have risen 13% year-on-year for domestic buyers, those using the dollar will find homes in London are almost 10% cheaper than a year ago.
“With the culture of the West End, thousands of years of history and fantastic employment opportunities, London has lots to offer US buyers, aside from a declining cost of living. And, of course, British winters aren’t as cold as Canada’s.”
