Donald Trump’s US Presidential election victory last week could have a positive effect on the UK housing market, according to panellists at yesterday’s Specialist Lending Expo.
Speaking on the panel, Fleet Mortgages chief commercial officer Steve Cox says: “From a housing market point of view, we need to remember there’s a lot of US money in our system here, particularly in securitised markets.”
Cox says: “Before Fleet sold to Starling Bank we were funded predominantly by Citi Bank, one of the biggest banks in the world.”
“A thriving US economy should attract more money into the UK’s system and that could feed out to lines such as specialist lending. It’s good for customers and all of us in this room.”
He points out that the US economy is in “reasonably good shape and it has been growing”.
However, Cox says in terms of the threats to the UK, “the tariff situation and throw away lines about NATO member states spending more on defence are probably the biggest, but we don’t really know what that means yet”.
During the US election campaign Trump threatened to impose tariffs of at least 10% on European imports, primarily targeted on the auto industry, rising to 60% across a range of Chinese imports.
Goldman Sachs downgraded the UK economy to grow by 1.4% next year, down from a previous forecast of 1.6%, in a report earlier this month. It expects growth to remain at 1.4 per cent in 2026.
“We expect the bulk of the growth hit to materialise between the first quarter of 2025 and the final quarter of 2025,” its analysts said.
However, Keystone Property Finance chief executive officer David Whittaker also weighed stating that Trump is “incredibly transactional”.
Whittaker adds: “Before he even gets into power, he’s not meant to get the endorsement of his appointees until 20 January next year but he is now demanding the senate does this ahead of his term in office starting.”
However, he highlights: “Whether we like it or not, it’s the choice of the American people and we have to respect their choice.”
“We’re getting off to a fast-running start with Trump. Whatever he does, it will impact the UK. America sneezes and the UK catches a cold.”
