The UK property market is set remain in limbo as Trump’s victory in the US election results in “enormous” global volatility in stocks, which will undermines buyer confidence, experts warn.
DeVere founder and chief executive Nigel Green says: “Buckle up for a bumpy ride in the global markets.
“Whether President Trump will, in fact, do what he has said he will do throughout his campaign, or whether it was just soaring rhetoric to whip up his support base, for now, Trump winning is sending shockwaves across the world.
“As such, enormous volatility can be expected in the markets.”
Green adds: “The Brexit result was a real shock and created instability in the UK. But this is a far bigger deal as this creates instability on a much wider, international scale.
“The markets’ main concerns include Trump’s protectionist policies, focusing on potential trade wars with China – America’s largest trading partner – and with Mexico, it’s third largest.
“In addition, with Trump having said certain countries are ‘cheating’ due to their undervalued currencies, currency tensions should also be expected.”
Reflecting on the knock-on impact on the UK property market, north London estate agent and former Royal Institution of Chartered Surveyors chairman Jeremy Leaf says the post-election power vacuum is worrying.
He says: “Even though Trump’s early words of reconciliation are encouraging we are likely to see a further period of uncertainty because he will not be able to take any decisive action until he assumes power in mid-January.
“That is a concern – a further period of limbo after until action is taken and in that time markets are likely to remain in uncertain territory.
“This is particularly problematic as it comes on the back of 18 months of limbo when the election result had been too close to call.”
Leaf adds: “The knock-on effect on sterling and the FTSE inevitably has an impact on confidence here at a time when we’re already nervously anticipating the fall-out from Brexit.
“At the very least it looks like we will have fewer transactions, tighter lending criteria, less housebuilding and higher rents – which is exactly the opposite of what we’re looking for at the moment.”