Scott Road,
Deputy Chief Credit Risk Manager, Market Financial Solutions
A general rule of thumb for life that pops up regularly is that we should think globally and act locally. These days, this phrase is often associated with environmental challenges. But given what we've seen in recent weeks, real estate investors will undoubtedly be thinking about what to do with their homemade portfolios in the face of dramatic geopolitical changes.
Most, if not all of us, now, may be seeing the Trump administration very well. And of course. The ongoing risk of strengthening the trade war has already dramatically affected the stock market and the foreign exchange rate. The question remains, but how will this all affect our own market?
Now, according to many specialized financial insiders, we may see widespread GDP hit a global recession. Second, this can lead to hesitations on lending, hiking taxes, increasing costs, and more.
Real estate investors themselves seem to be worried. For an independent first quarter study of Market Financial Solutions, we investigated landowners about their thoughts on the market conditions and the outlook for the year. Within the survey, respondents were asked to select up to three potential risks that could affect their BTL portfolio in 2025.
Apart from the ability to meet renters' payments, rising inflation, domestic political or economic instability (34.5%) that could have negatively impacted the real estate market, and global political or economic instability that could have negatively impacted the real estate market would have achieved the top spot.
You need to be careful of headlines that you worry about. But what's important for real estate investors is that for the lenders they work with, we all adapt to Shift News as needed. In fact, there is evidence that our local markets can benefit as they adapt to what is happening worldwide.
We were able to see an influx of demand from investors from currency portrayed by the dollar, who are keen to embrace a more stable market. Specifically, this includes buyers in the United Arab Emirates, Saudi Arabia, Qatar, Hong Kong and of course the United States itself.
There is already a precedent here. American real estate investors gathered in the London real estate market for its stability. This demand could continue as global investors continue to adapt. In fact, recent estimates from Beauchamp Estates detail inquiries from US buyers have increased by 25% since November.
The UK real estate market appears to be stable with all its mistakes and challenges. The appeal of it in the global economy cannot be underestimated. In fact, an analysis of land registration data shows that around 190,000 properties in England and Wales were owned by foreign buyers in 2024. It was an increase of 2.6% in 2023.
If this figure increases further over the coming months, foreign investors can rely on specialized financial markets for support. Roughly, bespoke lenders welcome overseas buyers and foreigners.
Additionally, specialized finance may be useful if investors are trying to diversify their holdings and perhaps move some of their wealth out of a chaotic stock or currency market. Bridging Finance is for first-time buyers and veteran professionals.
Hopefully, as we head into spring, all the alarmism in the press will die. But in the meantime, the specialist market is there for the Glova that is being recalibrated
