Trump's limits on US property investing could shift investors to UK housing market

US restrictions on institutional purchases of single-family homes may prompt large US investors to increase activity in UK new-build housing, and tenants' groups have raised concerns about possible higher rents and lower upkeep.

The US president announced a proposal to bar institutional companies from buying single-family homes and said he would ask Congress to codify the measure. The move was framed as responding to concerns about housing affordability in the US, where the median sale price was reported at $410,800 last year. Analysts say the restriction could lead some large US investors to look for opportunities outside the US, including in UK new-build housing. Key facts: - The president said he will ask Congress to make a ban on institutional purchases of single-family homes law; no timetable for that legislative step was provided. - Analysts and commentators reported that some large US investors and private equity firms could increase purchases in UK new-build and build-to-rent developments. - Tenant groups in the UK have raised concerns that greater involvement by large institutional investors could be linked to higher rents and reduced housing standards. - In the UK market, investors commonly buy multiple homes in new developments rather than individual owner-occupied houses, according to property research cited in the article. Summary: The reported US policy proposal has the potential to shift where major investors allocate capital, with analysts noting possible increased interest in UK new-build housing and tenant organisations expressing concerns about rent and maintenance. Undetermined at this time.