Spurring foreign demand for London real estate

london — Donald Trump may be good for the London housing market. That’s according to property website operator Rightmove, which says Trump’s shock election victory could spur the return of international investors seeking a safe haven.

While asking prices in the capital fell for a fifth month, the 0.3 per cent drop was much smaller than the 1.5 per cent average seen in November over the past six years, it said in a report published on Monday. The pound’s slide is helping to fuel demand.

“It is far too early to say that prices have re-adjusted enough to bring buyers back in volume, though there are reports that buyers with assets in currencies that have appreciated against sterling are buying again,” said Miles Shipside, housing-market analyst at Rightmove. “London’s status as a safe haven for overseas investors may perhaps be confirmed by the unexpected result of the US election.”

Trump’s win sparked a rally in global stocks but wiped more than $1 trillion off the value of bonds around the world on fears the president elect’s policies will boost inflation and prospects for higher interest rates. That’s also made investors dump higher-yielding emerging-market assets.

Real-estate agent Strutt & Parker said it expected increasing demand for prime central London property from North American buyers, who currently account for as little as two per cent in any quarter. “They aren’t currently a significant part of the market,” said Stephanie McMahon, head of research. “Following Trump’s triumph in the USA presidential election it is possible that this may change.”

London’s most expensive districts have fallen out of favour since the June 23 Brexit vote and April’s tax surcharge on investment properties. At 56 days, the time taken to sell a property in and around the capital has risen by almost a third since April, though it remains well below that in other parts of the country.

Overall, Rightmove said that prices in the UK fell 1.1 per cent in November, which is normally a slow month for sales. The average value of a home stood at £305,670 ($386,000), less than half the London average of £643,838.