In a notable shift within the UK property market, Rightmove has reported a significant uptick in inquiries from US-based house hunters, with a 19% increase compared to the same timeframe last year. This surge marks the highest level of interest from Americans since 2017, covering the period from January to early May 2025. Industry specialists suggest that the heightened inquiries may be partly attributed to global economic uncertainties sparked by recent announcements concerning tariffs by US President Donald Trump.
Edinburgh has emerged as the focal point for American buyers, surpassing traditional hotspots like London. This marks a departure from long-established trends where London typically dominated the interests of overseas buyers. The rising interest in cities such as Glasgow and areas in Scotland may be tied to relatively lower property prices, with the average home costing around £100,000 less than in England. This affordability is underscored by Toby Leek, president of the National Association of Estate Agents, who highlighted the allure of Scotland's picturesque landscapes coupled with its budget-friendly real estate.
Colleen Babcock, a property expert at Rightmove, emphasised the nuanced reasons behind this trend. “President Trump’s tariff announcements have led to more economic uncertainty globally, and we’re starting to see some of the effects of this on the UK property market," she stated. While the increase in inquiries could reflect a perception of the UK as a stable investment opportunity, Babcock noted that most US inquiries have been primarily for smaller properties, highlighting that many Americans view UK real estates as opportunities for short-term investments or holiday homes rather than permanent moves.
The number of high-net-worth individuals from the US entering the London market cannot be overlooked. Glynn Gibb, regional director at John D Wood & Co, observed a steady rise in inquiries for prime central London properties, particularly among those seeking to secure assets in what they perceive as a safe and stable investment environment. London offers not only a cultural hub but also global connectivity, positioning it as an attractive option for American buyers contemplating extended stays or investment rental properties. Gibb noted that many clients choose to temporarily reside in London while determining the length of their stay, often opting for rental arrangements to minimise financial commitments.
Despite this renewed interest, the current UK housing market is experiencing a cooling phase overall. According to a survey by the Royal Institution of Chartered Surveyors, house price growth has slowed, indicated by a decline in the net balance of house prices. However, there remains cautious optimism among surveyors about future sales and price stability, driven by anticipated changes in stamp duty and recent mortgage rate reductions.
Looking ahead, Rightmove's forecast for the housing market in 2025 anticipates a 4% rise in new seller average asking prices, signalling a potential resurgence in property values, particularly in London, which has lagged behind in recent years. The interest from international buyers, especially from the US, may substantially influence these trends, as they seek both investment opportunities and lifestyle changes in a changing economic landscape.
As the nature of property inquiries evolves, so do the dynamics of the UK real estate market, with foreign investments playing an increasingly pivotal role. The interplay between global economic conditions and local market factors will remain crucial in shaping where and how Americans choose to invest in UK properties.
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Source: Noah Wire Services