Donald Trump’s presidency could have a knock-on effect on the UK property market in 2017, the former chairman of the Royal Institution of Chartered Surveyors has claimed.
Jeremy Leaf, north London estate agent, said despite the early words of “reconciliation” spoken by the new President-elect having the effect of calming stock markets, there is still a long-term potential for greater uncertainty.
Mr Leaf predicted: “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.”
The knock-on effect on sterling and the FTSE “inevitably has an impact on confidence” in the UK, Mr Leaf explained, particularly as the market is “already nervously anticipating the fall-out from Brexit”.
According to Mr Leaf: “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.”
However, not all property specialists were worried about the effect a Republican President may have on the UK housing market.
Read more at FT Adviser
