Back to the blogs list

How Will the US Election Affect the Property Market in Wales?

How Will the US Election Affect the Property Market in Wales?

Welcome back to Padarn Property blogs! As I’m sure you’ve all heard, Donald Trump will become the 47th President of the United States of America. This got me thinking, how will the new President effect the property market in wales?


The ripple effects of global events often reach unexpected places, and the property market in Wales is no exception. With the US election on the horizon, it’s natural to wonder: could political changes across the Atlantic have any impact on our homes, investments, and property aspirations here in Wales?

While at first glance the link may seem tenuous, the global economy is deeply interconnected. Major events like a US election—especially one that could bring shifts in trade, policy, and markets—can have subtle but significant effects on property markets around the world. Let’s explore how and why this happens and what it might mean for Wales.

1. The Dollar-Pound Dynamic

The outcome of the US election often has an immediate impact on the strength of the US dollar. A shift in power can lead to changes in fiscal policy, trade agreements, or economic confidence. When the dollar fluctuates, so does its relationship with the British pound.

Why does this matter for Wales? Currency shifts affect international investors. If the pound weakens against the dollar, Wales might become more attractive to American investors looking for affordable opportunities. This could increase demand for property, particularly in sectors like tourism-focused real estate or city-centre developments in Cardiff and Swansea.

2. Interest Rates and Global Markets

The Federal Reserve’s monetary policy is closely watched worldwide. A US election could lead to changes in interest rates, which often influence global central banks, including the Bank of England.

If the Bank of England adjusts its rates in response to US economic trends, this could directly impact mortgage rates in Wales. Lower interest rates can make borrowing cheaper, boosting the housing market. Conversely, rising rates might cool demand, especially for first-time buyers.

3. Supply Chains and Construction Costs

Wales has seen a surge in new-build projects in recent years, from affordable housing schemes to luxury developments. The US election might seem far removed from this sector, but it’s not.

Global supply chains are sensitive to geopolitical changes, and the construction industry relies heavily on imported materials. If US trade policies shift, this could cause ripple effects across international markets, potentially driving up the cost of materials. For Wales, this might slow the pace of new developments or increase property prices as builders pass on higher costs to buyers.

4. Investor Confidence

The US election can create waves of uncertainty or optimism across global markets. Wales, known for its affordability and stunning landscapes, has increasingly attracted overseas investors. However, political turbulence in the US might lead investors to take a “wait and see” approach, holding back on international purchases, including Welsh properties.

On the other hand, if the election results in global economic stability, we could see renewed interest in Welsh property, especially from expats and international buyers.

5. The Tech and Remote Work Revolution

One unexpected link between the US election and Wales might be through the tech industry. US policies on tech innovation and remote work trends can influence how businesses operate globally.

Wales has positioned itself as an affordable alternative for remote workers, with growing infrastructure to support this lifestyle. A boom in remote-friendly policies in the US could spark more demand for Welsh properties as workers look for homes offering great value, quality of life, and connectivity.

What Should Welsh Buyers and Sellers Do?

While the US election is unlikely to cause immediate, dramatic changes in Wales’ property market, its effects will be felt over time. For buyers, keeping an eye on mortgage rates and the pound’s performance is key. Sellers might find renewed interest from international buyers depending on post-election economic trends.

The Welsh property market has long been resilient, driven by local demand, stunning landscapes, and affordability. While global events like the US election may create ripples, the fundamentals that make Wales an attractive place to live and invest will remain strong.

Whether you’re buying, selling, or simply watching the market, the key is to stay informed and adaptable. After all, the beauty of Wales is that it always offers something enduring—a sense of place, stability, and home!

Ben McEvoy

Comments


x