Don’t estimate the UK property market’s appeal for burnt out global investors

I’m proud to say I, along with several others of the amazing Market Financial Solutions team, kicked off 2025 with a promotion and new responsibilities. Looking ahead, I already can’t wait to get going and support the market through its troubles.

And those troubles are likely making both lenders and borrowers nervous. Political turmoil (or triumphs depending on differing perspectives) may force many a property investor or broker to think outside the box. Like, really outside the box.

Few things focus the mind like political upheavals. The kind that makes headlines worldwide. In the UK, we’ve got gilt drama to contend with. Yes, it threatens to push costs up, and it may make investing in the UK generally seem unappealing. But compared to what’s going on in the rest of the world, our humble island may be viewed as safe as houses.

Take Korea’s recent drama. It goes without saying that regardless of any country’s circumstance, I just hope its citizens don’t suffer or face unnecessary stress. But what recently occurred would have certainly made many South Koreans uneasy, even if only for a few hours.

Within six hours or so, Yoon Suk Yeol declared martial law, faced an uprising from his cabinet and protestors, and was forced to backtrack. It all happened so suddenly that locals are likely still trying to wrap their heads around what happened. But I’m willing to bet many are thinking their country isn’t as stable as they thought it was.

Ditto for the French. Michel Barnier now holds the honour of being France’s shortest-serving Prime Minister after a no-confidence motion was brought against him. Fran?ois Bayrou already seems to be struggling against the very challenges that brought down his predecessor.

Then of course, there’s the big one. America. Our rambunctious cousin. While its less something going wrong systemically, the recent election result clearly feels like end times for many Americans. Trump 2.0 has sent many a democrat into meltdown. It also seems that with Trudeau departing, Canada may soon end up lurching to the right.

Liberals the world over, or anyone who is unhappy with their local political climate, are likely keen to place their capital in the safest markets possible. Thankfully, the UK is already setting a precedent here.?

Wealthy US democrats are looking to invest in the UK property market. They’re either attempting to protect their estate, or move here entirely to escape a republican government. Time will tell if this is prudent, or a tad dramatic.

Still, the UK should benefit, even if the motive(s) seems a bit farfetched. In the opening months of 2024, long before we were thinking about Trump 2.0, American investors had acquired ￡2.6bn of UK real estate. In fact, the UK at large appears to be a desirable bolthole for much of the world’s capital. In Q1 of this year, Asian investors poured ￡6bn into our property market, while Europe contributed ￡5.6bn.

Chances are, as the dust settles in Europe, Asia, and America in the coming months, global property investors will be desperate for a bit of stability. The UK market, warts and all, may offer just that.