Edinburgh overtakes London as American house buyer hotspot
Edinburgh has overtaken London for the first time as the most popular UK destination for Americans buying homes abroad.
Figures published by Rightmove found that 28pc of enquiries from US buyers were in Scotland, compared to 26pc for London.
Edinburgh emerged as the most popular city overall, followed by Westminster. Glasgow rose to fourth place, overtaking the affluent London borough of Kensington and Chelsea.
The property website said enquiries from the US to the UK had risen by a fifth compared to last year as Americans sought to escape financial chaos unleashed by Donald Trump. The last time enquiries were this high was in 2017, at the start of Mr Trump's first term.
Rightmove's data included both people looking to relocate, as well as those investing in a second home in Britain.
Colleen Babcock, of Rightmove, suggested market chaos caused by Donald Trump's 'Liberation Day' tariffs had made Britain 'a more stable investment opportunity'.
Others, she said, were 'considering a permanent move across the Atlantic'.
The majority of enquiries were from people looking at 'smaller zero- to two-bedroom' properties, the website said, suggesting the increase was driven by investors looking for a second home.
However, roughly a third were looking at mass-market family homes.
John Forsyth, of Savills Edinburgh, said children's schooling was often the biggest draw for American buyers, adding that 'there is often an historic family link or a familiarity with the city from university days which adds to the draw from across the Atlantic'.
He added: 'We have definitely seen American buying activity in March and April. Scotland is always a hotspot for American buyers. Often they will combine a spring or summer holiday with a bit of property viewing, and that often translates into a purchase.
'One other noticeable difference is that now we are finding Americans looking for a permanent home rather than simply a 'holiday' home.'
Aneisha Beveridge, of Hamptons estate agents, said stamp duty surcharges and a weak dollar meant Americans are paying even more for a home in Britain than ever before.
She said: 'Interestingly, the dollar hasn't necessarily been on US buyers' side this year, having depreciated against the pound and a basket of other currencies.
'For example, a £1m property in Britain purchased at the beginning of the year would now essentially cost £925k today due to the depreciation of the dollar alone. And those purchasing second homes or investment properties here would face even higher costs given the rise in the stamp duty surcharge.'
Toby Leek, of NAEA Propertymark, the professional body for estate agents, said that while political uncertainty in the US may play a role in the increase, American buyers were also drawn to Britain's more picturesque and affluent areas because of their affordable prices.
He said: 'Scotland is likely to be particularly popular due to its scenic landscapes and the fact that the average home is around £100,000 less compared to that in England.
'In some ways, those who are looking for a rural escape may see this as providing more for their money.'
House prices in London have stagnated in recent years, particularly for flats. The price of a flat in the capital has not risen in a decade, according to Zoopla. High inflation means the average price has fallen in real terms by around a quarter.
Glynn Gibb, of estate agent John D Wood & Co, said London still represented 'both a safe haven and a strategic investment', adding that the capital's 'culture and global connectivity make it an ideal springboard to Europe and beyond'.
He added: 'We expect activity to build in the coming months – spring and early summer are typically busy – as more buyers make lifestyle and financial decisions shaped by the political climate in the US.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
17 minutes ago
- Telegraph
Live Economy shrinks in blow for Reeves
Britain's economy shrank at the start of the second quarter, official figures show, in a blow for the Chancellor after her spending review. UK gross domestic product (GDP) contracted by 0.3pc during the month, according to the Office for National Statistics (ONS). This was worse than analysts' fears that the economy would shrink by 0.1pc and follows a 0.7pc expansion during the first three months of the year. The data covers the month when Donald Trump launched his so-called 'liberation day' tariff onslaught which threatened to upend global trade. ONS director of economic statistics Liz McKeown said: 'After increasing for each of the four preceding months, April saw the largest monthly fall on record in goods exports to the United States with decreases seen across most types of goods, following the recent introduction of tariffs.' The figures come a day after economists warned that Britain faces tax rises in the autumn after Rachel Reeves unveiled her spending review. The Chancellor has made growing the economy one of her key missions as she battles to shore up the public finances. An expanding economy would mean that she is better able to pay off the nation's debt and would improve living standards. Ms Reeves said: 'Our number one mission is delivering growth to put more money in people's pockets through our Plan for Change, and while these numbers are clearly disappointing, I'm determined to deliver on that mission.'
Reuters
20 minutes ago
- Reuters
Trump's energy dominance agenda could be ravaged by Section 899
LONDON, June 12 - A proposed U.S. tax targeting foreign investors could hurt European energy giants that operate in America's booming oil and gas sector, undermining what President Donald Trump describes as his energy dominance agenda. Trump's sweeping tax and spending bill under review by the Senate includes an additional tax of up to 20% on foreign investors' income, such as dividends and royalties. The tax, known as Section 899, was devised as a pushback against countries that impose what the bill describes as "unfair foreign taxes" on U.S. companies, such as digital services taxes. Section 899 is believed to be targeting companies headquartered in the European Union and Britain, which both have tax systems considered discriminatory by the Trump administration. The provision is a significant threat to London-listed Shell (SHEL.L), opens new tab and BP (BP.L), opens new tab as well as France's TotalEnergies ( opens new tab and Spain's Repsol ( opens new tab, which all have sprawling operations in the United States. Trump, who often used the slogan "drill, baby, drill" in his election campaign, has portrayed himself as pro-fossil fuel, vowing on his first day in office to maximise oil and gas production. But if approved, Section 899 could have the opposite effect. BP last year invested more than $6 billion, about 40% of its capital expenditure, in the United States, where its interests include onshore and offshore oil and gas operations, two refineries, thousands of retail fuel stations and a power trading business. The country is also home to more than a third of BP's global workforce of about 90,000 and accounted for roughly 30% of its 2024 revenue of $189 billion and more than a quarter of its $21 billion net profit. Shell, the biggest European oil major, is also a huge investor in the United States, which accounted for 23% of its 2024 revenue of $284 billion. It invests about 30% of its capital expenditure in the country, where it has oil and gas production facilities, a petrochemicals plant, a vast retail network, liquefied natural gas (LNG) purchasing agreements and major trading operations. The United States became increasingly important to Big Oil companies in recent decades thanks to its stable fiscal and regulatory environment while other regions presented a variety of challenges. Take Russia, for example. Its vast oil and gas resources started attracting investments from many companies in the 1990s after the collapse of the Soviet Union, but the country is now uninvestible owing to western sanctions that followed Russia's invasion of Ukraine in 2022. Similarly, western companies have limited opportunities to invest in the Middle East, where national oil companies dominate. Europe, meanwhile, has limited natural resources and strict environmental regulation. The multinational nature of oil and gas companies means they have plenty of experience dealing with tax uncertainty, but shifting tax policies tend to delay investments. Company boards require long-term confidence to proceed with large, multi-decade capital projects such as oil and gas fields or LNG plants. The industry's confidence in the United States was already shaken under Trump's predecessor, Joe Biden, who in 2020 revoked a construction permit for the Keystone XL pipeline. The Biden administration also paused approvals for new LNG projects in 2024 because of climate concerns. Trump lifted the pause when he entered the White House. According to Section 899, multinational companies could face a new tax on dividends sent overseas and inter-company loans, potentially reducing profit. The Gulf of Mexico accounted for about 10% of Shell's 2024 free cash flow of $40 billion, it said in a presentation. That means that Section 899 could shave $800 million from its free cash flow per year from Gulf of Mexico operations alone. BP made about $1.5 billion in free cash flow in the United States last year, Reuters calculations show. A 20% dividend tax could translate into a $300 million loss in free cash flow. Faced with the worsening fiscal terms, companies could opt to direct funds away from the United States. Though options for deploying capital elsewhere on a similar scale are limited, companies could choose to spread their investments more widely. Such a scenario could be a boon for countries such as Canada, Brazil, Mozambique and Namibia, which have large untapped natural resources. Another option would be for companies to transfer their headquarters and listings to the United States - a costly and politically complicated option. Shell previously contemplated such a move to boost its share value, though it appears to have abandoned the idea. Ultimately, it is very likely that the Senate would push to modify Section 899 or limit its scope, given the potential far-reaching impact on many sectors. But barring a radical change, Section 899 poses a huge risk for European oil and gas giants that are heavily dependent on the United States. Achieving the Trump administration's energy dominance agenda will almost certainly require more foreign investment, not less, so if the CEOs of European energy companies complain loudly enough, the president may well listen to them. The opinions expressed here are those of the author, a columnist for Reuters Enjoying this column? Check out Reuters Open Interest (ROI), opens new tab, your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis. Markets are moving faster than ever. ROI, opens new tab can help you keep up. Follow ROI on LinkedIn, opens new tab and X., opens new tab
The Independent
21 minutes ago
- The Independent
Britain morphing into ‘National Health State', says think tank
Britain is turning into a 'National Health State', a think tank has said after the Chancellor gave the NHS a major funding boost in her spending review. The health service was the big winner of Wednesday's spending review, receiving an extra £29 billion per year for day-to-day spending and more cash for capital investment. Overnight, the Resolution Foundation said Rachel Reeves's announcements had followed a recent trend that saw increases for the NHS come at the expense of other public services. Ruth Curtice, chief executive of the Resolution Foundation, said: 'Health accounted for 90% of the extra public service spending, continuing a trend that is seeing the British state morph into a National Health State, with half of public service spending set to be on health by the end of the decade.' Defence was another of Wednesday's winners, Ms Curtice said, receiving a significant increase in capital spending while other departments saw an overall £3.6 billion real-terms cut in investment. The Institute for Fiscal Studies (IFS) made similar arguments about 'substantial' investment in the NHS and defence coming at the expense of other departments, although the think tank's director Paul Johnson warned the money may not be enough. He said: 'Aiming to get back to meeting the NHS 18-week target for hospital waiting times within this Parliament is enormously ambitious – an NHS funding settlement below the long-run average might not measure up. 'And on defence, it's entirely possible that an increase in the Nato spending target will mean that maintaining defence spending at 2.6% of GDP no longer cuts the mustard.' Ms Curtice added that low and middle-income families had also done well out of the spending review 'after two rounds of painful tax rises and welfare cuts', with the poorest fifth of families benefiting from an average of £1,700 in extra spending on schools, hospitals and the police. She warned that, without economic growth, another round of tax rises was likely to come in the autumn as the Chancellor seeks to balance the books. She said: 'The extra money in this spending review has already been accounted for in the last forecast. 'But a weaker economic outlook and the unfunded changes to winter fuel payments mean the Chancellor will likely need to look again at tax rises in the autumn.' Speaking after delivering her spending review, Ms Reeves insisted she would not have to raise taxes to cover her spending review. She told GB News: 'Every penny of this is funded through the tax increases and the changes to the fiscal rules that we set out last autumn.'
