Investment in UK property by overseas landlords has hit a five-year high, according to property management company, ludlowthompson. Data shows that 184,000 overseas nationals own property in Britain, representing a 19% increase over the past five years.
The property management company stated that the rise in the number of foreign buyers shows that Brexit has not deterred overseas investors looking to buy property in Britain. Ludlowthompson said that many overseas investors have capitalised on the drop in value of the pound sterling between the EU referendum and Brexit deal.
Foreign investors have reportedly been able to get more for their money because of favourable exchange rates, which has opened up the market to a wider pool of investors.
BNO visa launch plays part
Ludlowthompson’s research shows that in recent years, there has been a surge in the number of investors from Hong Kong. The property management company has attributed this to the launch of the new BNO visa.
There has been a steady rise in the number of overseas nationals securing UK investor visas. Many overseas landlords have purchased property in order to provide accommodation for their children who have secured a study visa to attend a UK university.
Investment in UK property in the current climate has also been made more appealing by the stamp duty holiday, which has enabled many overseas investors to save more than £15,000 on properties worth up to £500,000.
The stamp duty holiday currently runs until 30 June, when it will then be reintroduced on properties worth £250,000, before becoming applicable to properties above the £125,000 threshold from 30 September, 2021.
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Brexit fears unfounded
Chairman of ludlowthompson, Stephen Ludlow, said: “Fears that Brexit might dampen the appeal of UK property amongst overseas investors have been unfounded, with the number of overseas landlords reaching a record high.”
“Many canny investors took advantage of the temporary drop in sterling’s value to purchase properties in the UK and benefited from both an increase in property prices and a recovery in sterling,” Ludlow added.
Meanwhile, the launch of the UK BNO visa on 31 January saw interest in UK properties soar among nationals from Hong Kong. London in particular has seen a high volume of interest, while cities such as Liverpool and Manchester have seen strong interest as well because of more affordable properties and living costs compared to the capital.
The BNO visa provides a pathway to UK citizenship, which has heightened interest among Hong Kong nationals to secure property in Britain.
BNO visa applicants
Property experts are anticipating a continued rise in the number of overseas investors looking to purchase property in the UK, especially from Hong Kong.
The UK government has been unable to put an exact figure on the number of people set to arrive in Britain from Hong Kong. However, they are predicting that at least 300,000 will arrive over the net five years. 7,000 people from the former British territory have already been allowed to settle in the UK.
Written by: Daniel Waldron
Source: Work Permit
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