By Charles Ferguson-Davie and Marc Gilbard
With last week’s trade announcement, the UK and the US have demonstrated their close relationship, even if the journey from here will have its challenges. The shielding of some key industries from the worst of tariffs should give businesses and investors some comfort, as will last week’s interest rate cut from the Bank of England to 4.25%, with the expectation of further cuts to come over the next two years.
As trade and other important relations post-Brexit also improve with Europe, there is an opportunity for the UK to fulfil its traditional role as a bridge between Europe and America, whilst also reminding the world of its broad influence.
Although there is materially more the government can, and should, be doing to encourage and support economic growth, the UK is in a relatively strong position and we expect UK real estate to be a beneficiary of asset class and geographic reallocations by institutional investors, especially in needs-based and structurally supported sub-sectors.