Trumped! US buyer demand for UK property hits eight-year high amid trade fears

Anna Ibbotson
Proposed US Income Tax Changes in ‘The One, Big, Beautiful Bill’ will make global mobility much more expensive Tax rises on the horizon for US businesses unless they plan ahead US President, Donald Trump’s ‘The One, Big, Beautiful Bill’ includes tax provisions that will make global mobility much more expensive for businesses unless they plan ahead, say leading audit, tax and business advisory firm, Blick Rothenberg. David Livitt, a Partner at the firm, said: “In US President, Donald Trump’s ‘The One, Big, Beautiful Bill’, there are a number of tax provisions, including a proposed incremental increase in U.S. tax rates starting at 5% and rising to 20% on income earned by residents of foreign countries deemed to have unfair tax regimes. This isn’t just a headline change, it’s a significant concern for global employers and employees.” He added: “These proposed tax changes could hit a wide range of individuals and businesses with international connections, particularly those moving in or out of the U.S. Those who may feel the pinch are: People who’ve left the U.S. but still have U.S. income Some individuals continue to earn U.S.-based income (like bonuses, stock payouts, or deferred compensation) even after leaving the country. Under the new rules, they may face higher tax rates, even though they no longer live or work in the U.S. Employees on company-sponsored tax equalization plans Many globally mobile employees have their U.S. taxes covered by their employer. If tax rates go up, the employer pays more, increasing assignment costs and possibly affecting future mobility programs. Employees moving to the U.S. mid-year When people relocate to the U.S. partway through the year, they may not be considered full U.S. tax residents right away. Under the proposed changes, these individuals could be taxed more heavily during that first partial year. Employees leaving the U.S. at year-end Similarly, individuals who leave the U.S. during a tax year might lose their full resident status. Any income earned after they leave, like bonuses or stock vesting, could now be taxed at a higher rate.” David said: “For companies with globally mobile employees, especially those who are non-U.S. residents or moving in and out of the U.S. the proposed tax hikes could make assignments significantly more expensive and individuals could face much higher U.S. tax bills simply because of when income is paid or where they live. And in many cases, the company foots that bill through tax equalisation.” He added: “But with the right planning, companies can reduce those costs and protect their mobility program: Time payments wisely Bonuses, stock payouts, or other compensation that would otherwise fall in a higher-tax year can be accelerated into 2025 before the new rates hit. This is especially helpful for employees leaving the U.S., relocating to the U.S. mid-year, or with trailing income after a move. Review stock compensation schedules If Restricted Stock Units (RSUs) or stock options are due to vest in early 2026, consider settling them before year-end 2025. This can prevent triggering the higher marginal rates or foreign surtaxes. Consider the type of stock compensation you want to issue Careful tax planning could involve issuing Incentive Stock Options (ISOs) to avoid compensation and ordinary income tax that normally applies to nonqualified stock options. However, be aware of certain limitations and triggering of alternative minimum tax. Defer income after 2026 — where possible Where employees will be in lower-tax situations in the future (e.g., post-assignment or post-retirement), consider deferring compensation until then. Deferred comp plans may help manage the tax timing. Maximise tax-efficient benefits Use employer-sponsored plans to reduce taxable income in high-rate years. Every dollar shielded helps, especially when companies may be absorbing tax equalisation costs.” David said: “These proposed changes could significantly impact companies with mobile workforces and highly compensated employees. Now is the time for proactive planning to stay ahead of what could be a very different tax landscape in 2026.”

Interest from American buyers in UK homes has surged to its highest level since 2017, according to new data from Rightmove, as growing uncertainty over President Trump’s economic policies prompts a rise in enquiries.

The property portal reports that enquiries from the United States about homes for sale in the UK are up 19% compared to the same period last year, marking the strongest interest from US buyers in eight years. The data covers a mix of buyers — those looking to relocate, invest in buy-to-let, or purchase a second home.

A significant 47% of these enquiries are focused on smaller properties (0–2 bedrooms), suggesting that many are eyeing investment opportunities or UK boltholes rather than permanent moves. Still, nearly a third (32%) of potential buyers from the US are looking at more typical family-sized homes, indicating that a growing number may be contemplating relocation.

The increase coincides with heightened concern around Trump’s trade strategy, particularly speculation over long-term international tariff policy. For some, the UK is now emerging as a safer and more predictable investment environment.

In a shift that reflects changing priorities, Scotland has overtaken London as the most searched region among US house hunters. Historically, the capital has drawn the lion’s share of transatlantic interest, but 28% of current US enquiries now focus on Scotland, versus 26% for London.

Within those figures, Edinburgh has become the top city for American buyers, overtaking Westminster. Glasgow has also moved up the ranks, now placing fourth and displacing high-end London boroughs like Kensington and Chelsea.

Colleen Babcock, property expert at Rightmove, said the rise in US interest likely reflects wider economic uncertainty: “President Trump’s tariff announcements have led to more economic uncertainty globally, and we’re starting to see some of the effects of this on the UK property market.

Whether it’s because the UK is seen as a more stable investment opportunity, or whether some buyers are considering a permanent move across the Atlantic, we’re seeing an increase in enquiries from the US.”

However, Babcock cautioned that the surge in interest represents only a small proportion of total UK buyer enquiries. Still, it marks a notable trend as political turbulence in the US pushes some Americans to look across the Atlantic — not just for holidays, but for property.

As Trump’s trade rhetoric continues to make waves, the UK — and particularly Scotland — may find itself climbing the wishlist of American investors in search of a new base.

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