It’s a wild world
The summer’s Brexit upheaval and the run up to the US election serve as fairly keen reminders that the world of politics can be at times unpredictable and frankly disconcerting. There’s no lack of coverage on the Trump vs Clinton circus, so this is not the place to get into real detail, but whoever gets the nod from the US electorate, it looks very likely that both are going to take a route of ‘protectionism’. Trump’s campaign has been focussed on reducing immigration and more traditional conservative ideas, whilst Clinton is very much part of the existing system and would be protectionist by keeping things as they are and resisting change.
History has often shown us that protectionism leads to recession – and let’s not forget that both France and Germany have elections next year. The European project has taken quite a hit, and a voter backlash in France and Germany would likely be again in the direction of protectionism. A global recession would certainly be a possibility in the short to medium term particularly given these variables.
Whilst the media were quick to play on the message that the Brexit vote would plunge the UK into recession, here in West London and the UK things have remained fairly stable, remaining somewhat resilient when you consider the usual summer slowdown. The status quo is that in the UK demand for housing far outstrips supply, so whilst prices have slipped back slightly, it’s an opportune time to trade up. Financing property is the cheapest it has been for a long time, and the Bank of England are committed to holding interest rates very low.
So whilst you need to keep an eye on the global market and affairs, keep your feet on the ground with what’s happening in the local market; the UK economy is looking a lot healthier than Hilary and more stable than Trump at the moment! With over 30 years in the business, we have our fingers on the pulse and we’re happy to chat through the property market and the options for both those buying and selling property at home or abroad.