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International Demand For UK Property Expected to Surge This Summer

Industry experts are predicting that overseas buyers will be rushing to invest in UK property in summer 2021, once international restrictions are eased.

Summary:

  • International buyers have still got a strong appetite for investment properties in the UK. Buyers from the Middle East and Hong Kong are leading the pack.
  • UK property market remains buoyant despite the COVID-19 pandemic, demonstrating the resilience of this historically strong market.
  • Areas outside of London are being touted as the best investment and cities in the North and Midlands like Manchester, Birmingham and Leeds are attracting keen interest.

International travel restrictions look set to be eased this summer, with overseas buyers expected to be waiting eagerly to be able to scout out new UK property investment opportunities.

The British property market has emerged from the gloom of COVID-19 intact and as strong as ever. While demand slowed considerably at the start of the pandemic, pent-up demand was unleashed in the summer of 2020 and another surge is anticipated in summer 2021.

Every region in the UK recorded an increase in house prices in 2020 and estate agent Savills is predicting that house prices will rise by another 4% this year. Lucian Cook of Savills commented that: “By extending both the stamp duty holiday and the furlough scheme in last week’s Budget, the Chancellor has significantly reduced the downside risks in the mid-year, while a recovering economy should support price growth towards the year end.”

Buyers from overseas – especially the Middle East and Hong Kong – are particularly keen to capitalise on the strength of the market. While properties in London were previously highly sought-after, many of these buyers are now looking to seek better investments in regional cities.

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The Stamp Duty holiday gave many of these buyers a push in 2020, but global optimism is set to cause another surge in Middle Eastern and Hong Kong purchase rates in 2021 as well.

Investment property in the North West and Midlands is being highlighted as having much stronger rental yields and better opportunities for long-term capital appreciation.

Middle Eastern property buyers have long been leading the way in the race to get on the UK property ladder, but there has recently been an influx of buyers from Hong Kong as well. This is due to the new path to UK citizenship being granted to them in 2020.

Where are overseas investors looking?

Developers and estate agents across the North West and Midlands are reporting strong interest from overseas buyers, and this trend looks only set to increase in the summer.

Manchester, Leeds and Birmingham are all featuring as some of the most desirable locations for investment-savvy overseas property buyers.

Global real estate agent Jones Lang LaSalle forecast in January that Manchester will see the highest sales price growth (17.1%) and rental price growth (16.5%) in the UK over the next five years.

Manchester has been known as an investment hotspot for some years, but the city continues to grow – both in terms of industry and population – and is highly desirable by both young professionals and families alike.

The bustling city of Birmingham also continues to be a strong contender on the international property investment scene. In global real estate services company JLL’s recent residential housing report, Birmingham was reported to be the ‘standout performer’. House prices and the rental market are both expected to perform strongly over the next few years due to business and transport investment in the city.

Source: Select Property

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