The news comes in contrast to the latest house price figures (Picture: Getty Images)

A surge of American investment into the UK is expected to breathe new life into London’s property scene, according to new analysis from financial brokerage Enness Global.

During the recent US State Visit, more than £150 billion in transatlantic investment commitments were announced — a level of funding that could have a transformative impact on London’s economy and housing market.

These substantial investments are additionally supported by further high-value commitments from global giants such as Microsoft, Google, Nvidia, Salesforce, and CitiGroup.

Enness Global believes this wave of capital could stimulate growth across London’s infrastructure, data, energy, and innovation sectors, creating new jobs and boosting confidence.

As a result, the firm predicts London house prices could climb by around £31,000 within two years — a faster rise than previously expected.

Land Registry data from August put the cost of an average home in London at £565,567, and baseline forecasts suggest prices would normally reach £579,518 by August 2027.

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But with this US-driven momentum, values could climb closer to £596,904, marking a potential 1-3% lift above expected growth.

The news is in contrast to the recent data from Halifax’s house price index, which found that property prices in London are falling, with a decrease of 0.3% month-on-month in October.

Enness Global attributes the expected rise in property values to the economic benefits of sustained foreign investment, including job creation, enhanced business confidence, and higher inflows of international talent — all vital drivers in a city grappling with a persistent housing shortage.

Market data backs up these forecasts: in the first quarter of 2024, US investors purchased £1.9 billion worth of commercial property in London — the highest quarterly total in eight years.

This includes MCR Hotels’ £275 million acquisition of the BT Tower and Elliott Management’s £300 million purchase of a West End property portfolio.

Islay Robinson, CEO of Enness Global, said: ‘London’s property market has always been a barometer for global confidence, and this latest surge of US investment into the UK has the potential to be a turning point.

‘The scale and diversity of these commitments – spanning technology, energy, finance, and defence – will not only strengthen the wider economy, but also filter directly into the housing market through job creation, inward migration, and renewed investor appetite.’

Such investment patterns suggest a potentially transformative phase ahead for London’s property sector.

Increased international investment is expected to drive business confidence and foster tangible growth in the housing market.

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