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Number of overseas landlords with UK properties hits five-year high

If the latest figures highlighting the number of overseas landlords owning property in the UK is anything to go by then Brexit hasn’t deterred investment in the UK property market.

According to the most recent data, the figure stands at a five-year high of 184,000 – marking an increase of 19% over five years, when there were 154,000 overseas landlords,

Residential property market experts, Ludlowthompson, suggest that many overseas investors have capitalised on the drop in the value of Sterling between the EU referendum and the Brexit deal to add to their portfolios. Favourable exchange rates meant that foreign buyers were able to get more for their money, opening the market up to a wider pool of investors.

Despite tax changes, including a 2% Stamp Duty surcharge that will increase costs for overseas investors, property in the UK will remain an attractive long-term investment prospect for investors from many overseas jurisdictions.

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The UK property market has traditionally been resilient in times of economic uncertainty and a structural shortage of properties has kept rental yields relatively strong.

In recent years there has been an increase in the number of Hong Kong buyers of UK property. This is expected to rise following the launch of the new visa for Hong Kong British National Overseas passport holders.

The reputation of schools and universities in the UK has also benefitted the property market. Many overseas landlords who have purchased property have done so to provide accommodation for their children who were studying in the UK.

Overseas landlords have been benefitting from the Stamp Duty holiday, which has enabled buyers to save as much as £15,000 on properties worth up to £500,000. The holiday is set to run until June 30th after which point Stamp Duty will be reintroduced on properties worth £250,000, and will apply to properties over the £125,000 threshold from September 30th. Whilst overseas landlords have benefited from the holiday, from April 1st they will be liable to pay a 2% Stamp Duty surcharge on property investments.

Stephen Ludlow, Chairman at ludlowthompson, comments: “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.”

“Investments by overseas landlords into UK buy-to-let properties have ensured that there has been a steady stream of capital into that sector, which has kept the quality of rental stock far higher than would have been the case with these investors.”

Source: Property Reporter

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Overseas landlords set a new five-year record during the pandemic

An increase of 19% will now see the number of overseas landlords hit a five-year high of 184,000. Despite the implications of Brexit, the COVID-19 pandemic and recent tax changes preventing such moves from happening in the first place, the UK property market has thrived. And, these factors have not been a deterrent for foreign investors at all.

The UK has been a go-to destination for foreign investors for many years now. Those out of the 184,000 overseas landlords are potentially on track or have already experienced projected capital growth and favourable exchange rates due to their investments. Increased tax changes, such as the 2% stamp duty surcharge introduced to overseas investors at the start of this month, are trumped by the long-term prospects UK properties currently have.

The most noticeable increase has been seen from Hong Kong investors following the new British National Overseas (BNO) visa launched at the end of January. Locations such as London have seen a high level of interest from this group of foreign investors. At the same time, northern cities such as Liverpool and Manchester have also been popular due to the more affordable properties and living costs compared to the former.

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A Senior Director of Global Sales and Marketing, Cauvery Nanaiah, has commented that these overseas buyers transact in the Hong Kong Dollar and Chinese yuan due to the pound sterling being so low, therefore getting value for their money. “Interestingly now, the focus is moving away from zones 1 and 2, towards regeneration areas with better yields, such as Luton, Harlow and Hounslow,” she added.

The fact that overseas investors are continuing to invest within the UK property market is an extremely positive sign for the market’s future. The value of UK property is soaring even off the back of a global pandemic. The quality of life the UK offers is also seen as a bonus to overseas investors. The reputation of schools and universities here in the UK help to attract foreign investment and encourage overseas landlords to invest. Many decide to purchase buy-to-let properties, which will also help provide accommodation for their children studying in the UK.

The number of overseas property investors is expected to soar, as the UK government predicts at least 300,000 Hong Kongers will arrive in the next five years. Around 7,000 people from the former British colony have already been allowed to settle in the UK. These numbers do not consider the number of overseas investors from other countries either, which could see the 19% rise even higher than anticipated.

Investing in UK property has never been as popular for overseas landlords. The properties they purchase should also see them make capital growth due to the value of the sterling, which should only ever rise. Therefore, domestic investors should note these changing statistics and increased competitions, as they could miss out on capital growth post-pandemic. If you’re searching for your next property to invest in, read our blog on where tenants want to live as we enter the new ‘normal.’

Written by Nicholas Wallwork

Source: Property Forum

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Overseas Property Investors Still Buying UK Property

Brexit has not put overseas property investors off investing in UK property, London property agent ludlowthompson has reported.

In fact the number of overseas landlords owning UK property has hit a five-year high, said the firm. At 184,000, the number represents a 19 per cent increase over five years.

Many overseas investors made the most of the fall in the value of the pound between the UK’s EU membership referendum and confirmation of a Brexit agreement. ‘Favourable exchange rates meant that foreign buyers were able to get more for their money, opening the market up to a wider pool of investors’, said ludlowthompson.

Despite tax changes, including a 2 per cent stamp duty surcharge, UK property will remain an attractive long-term investment prospect for overseas investors, it believes.

To find out more about how we can assist you with your Expat Mortgage requirements, please click here to get in touch

In recent years there has been an increase in the number of Hong Kong buyers of UK property. This is expected to rise following the launch of the new visa for Hong Kong British National Overseas passport holders, said the firm.

‘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’, said ludlowthompson chairman Stephen Ludlow.

‘Investments by overseas landlords into UK buy-to-let properties has ensured that there has been a steady stream of capital into that sector, which has kept the quality of rental stock far higher than would have been the case with these investors’.

Source: Landlord Knowledge

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The number of overseas landlords reaches a five year high

The number of overseas landlords owning property in the UK has hit a five-year high of 184,000, marking an increase of 19% over five years.

Ludlowthompson says that the rise in the number of overseas landlords shows that Brexit has not been a deterrent for those looking to invest in UK property, as many overseas investors have capitalised on the drop in the value of pound sterling between the EU referendum and the Brexit deal to add to their portfolios.

Favourable exchange rates meant that foreign buyers were able to get more for their money, opening the market up to a wider pool of investors, says the estate agent.

Ludlowthompson adds that despite tax changes, property in the UK will remain an attractive long-term investment prospect for investors from many overseas jurisdictions.

Research shows that in recent years, there has been an increase in the number of Hong Kong buyers of UK property. This is expected to rise following the launch of the new visa for Hong Kong British National Overseas passport holders.

The reputation of schools and universities in the UK has also benefitted the property market. Ludlowthompson says that many overseas landlords who have purchased property have done so to provide accommodation for their children who were studying in the UK.

To find out more about how we can assist you with your Expat Mortgage requirements, please click here to get in touch

Overseas landlords have been benefitting from the stamp duty holiday, which has enabled buyers to save as much as £15,000 on properties worth up to £500,000. The holiday is set to run until 30 June after which point stamp duty will be reintroduced on properties worth £250,000, and will apply to properties over the £125,000 threshold from 30 September. From 1 April, overseas landlords will be liable to pay a 2% stamp duty surcharge on property investments.

Stephen Ludlow, chairman at ludlowthompson, 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.

“Investments by overseas landlords into UK buy-to-let properties has ensured that there has been a steady stream of capital into that sector, which has kept the quality of rental stock far higher than would have been the case with these investors.”

Source: Property Wire

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