How Global Tariff Wars Are Shaping the UK Property Market: Impact on Residential and Commercial Real Estate

How Global Tariff Wars Are Shaping the UK Property Market: Impact on Residential and Commercial Real Estate

As of March 17, 2025, the ongoing global trade disputes—particularly between major economies such as the United States, European Union, China, and Canada—are having far-reaching effects on industries worldwide. The UK property market, both residential and commercial, is not immune to these pressures.

Higher tariffs, inflation, and economic uncertainty are influencing property prices, investment trends, and borrowing costs. Whether you’re a homebuyer, investor, or commercial landlord, understanding these changes is crucial for making informed decisions.


Impact on the UK Residential Property Market

1. Mortgage Costs & Interest Rates

Trade wars often lead to inflation as the cost of imported goods rises. To combat inflation, the Bank of England may increase interest rates, making mortgages more expensive. Higher borrowing costs could reduce buyer demand, particularly among first-time buyers.

2. House Prices & Market Confidence

Economic uncertainty typically slows house price growth. Buyers tend to adopt a wait-and-see approach, leading to longer selling times. Regions reliant on manufacturing and exports could see more significant price adjustments.

3. Construction & Housing Supply

Tariffs on materials like steel, aluminium, and timber mean that new-build costs increase. Developers facing higher costs may delay projects, reducing the supply of new homes and potentially driving up rental prices.


Impact on the UK Commercial Property Market

1. Business Investment & Office Demand

With companies uncertain about future trade conditions, many are delaying expansion plans. This has led to lower demand for office space, especially in cities reliant on international trade, such as Manchester, Birmingham, and London.

2. Industrial & Warehouse Sector Growth

Interestingly, the logistics and warehousing sector has seen increased demand. Companies are reshoring (bringing production back to the UK) or stockpiling goods to avoid future trade disruptions, leading to higher demand for storage and distribution centres.

3. Retail Property Challenges

Rising import costs mean that retailers are facing higher supply chain expenses, leading to increased operating costs. This puts pressure on high-street retail spaces, particularly in less affluent areas.


How Belview Can Help in an Uncertain Market

In times of economic uncertainty, having an expert property partner is crucial. At Belview, we provide bespoke sales, lettings, and management services tailored to both residential and commercial clients.

âś… For Residential Landlords & Buyers:

  • We help landlords optimise rental yields by adjusting strategies based on market conditions.
  • Buyers benefit from our expert market insights to find opportunities even in fluctuating conditions.

âś… For Commercial Investors & Business Owners:

  • Our team identifies prime commercial properties that remain resilient despite economic uncertainty.
  • We assist businesses in securing the best lease terms for offices, warehouses, and retail spaces.

With our local expertise and hands-on approach, we help clients navigate the challenges posed by the changing economic landscape.

đź“© Get in touch with us today!
đź“Ť Visit www.belview.com


Final Thoughts

While global tariff wars continue to create economic uncertainty, smart investors and landlords can still find opportunities with the right guidance. Whether you’re a residential or commercial property owner, Belview is here to help you adapt, strategise, and thrive in the ever-changing UK property market.

👉 Need expert property advice? Contact Belview today!