Knight Frank said international buyers and tenants are turning to the UK property market as a “safe haven”.
Sharp’s decline in global markets caused by uncertain directions in U.S. trade policy has strengthened trusted asset classes such as UK real estate.
Tom Bill, head of residential research at Knight Frank, UK, said: [US President] Donald Trump makes buying a home in the UK slightly cheaper. ”
“Tariff turmoil in recent weeks has put pressure on mortgage rates as the Bank of England is expected to cut more aggressively to support the UK economy, down 0.25% from next week.”
“The five-year Sonia swap rate ended last Thursday in a 3.7% trade, and that figure exceeded 4% in the end of March before the first tariff announcement,” Bill added.
The U.S. government elaborated on the full scope of its tariff plan, affecting more than 70 countries on April 2, called “Liberation Day.”
Knight Frank said the number of UK exchanges was below £5 million in the six months ended a year ago, an increase of 7%.
“High value markets where buyers have more discretionary discretion are more susceptible to decisions from the White House or Downing Street,” Bill said.
The real estate company said it has seen a “transformation in sentiment” among international buyers after “the uproar in global financial markets this month.”
Stuart Bailey, head of London super players sales at Knight Frank, said: “The UK is playing the security card, but by default it is more important than design.
“We’re seeing buyers from the Middle East who want to make long-term investments in London because it’s safe.”
Bailey added that the UK’s “strong rental market” is also a great attraction for foreign investors.
The agency noted: “The average price in the best central London is 18% lower than the last peak in mid-2015.
“Since then, it seems particularly valuable to some.”
The company highlighted comments by Quantmetriks chief economist Savvas Savouri, who said that at the institutional level, sovereign wealth increase from countries such as Canada, Australia, Norway, Singapore and Qatar will continue to flow into commercial and residential properties in the UK “because their own domestic market is too small”.
He said the UK has recently made a call for investors’ non-tax system despite recent recent calls under the former Conservative government and current workforce management.
Savely added: “The UK still has the appeal, political warts and everyone.”
