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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.

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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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London should be the first to welcome those from Hong Kong

On 31st January, millions of Hong Kong residents were offered a new route to move to Britain. Already 5,000 have signed up for a visa that allows them to settle in the UK, with some estimating as many as two million may eventually move here. For London’s property market, which has had a tough few years between Brexit, stamp duty changes and covid-19, Hongkongers could provide a welcome shot in the arm.

They have already been making their mark. According to immigration advisers Astons, citizens of the Asian city-state invested over £300m in London housing in the first nine months of 2020. Meanwhile, recent research by Hamptons International revealed buyers from Hong Kong were behind almost ten percent of all sales last year in the capital’s wealthiest boroughs.

Many Hongkonger families had already bought investment properties in London before the Chinese government’s crackdown, while Hong Kong-headquartered firms such as C C Land and Far East Consortium have been major players in London real estate for years now.

C C Land acquired the Cheesegrater for £1.15bn in 2017 – the single largest purchase by a Chinese investment company in British property – and is one of the joint venture partners behind the £1bn revamp of the former Whiteleys department store.

The arrival of thousands of Hongkongers in the UK capital will likely drive further activity. Indeed, the chief executive of Far East Consortium told Bloomberg last year the developer hoped to capitalise on the potential exodus.

Given anxieties about immigration undeniably contributed to the Brexit vote, the government’s decision to open the doors to potentially millions of Hongkongers may seem surprising.

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But unlike in the Nineties, when there was firm opposition to giving Hongkongers a route to UK residency, there is now clear support across all party lines to give residents of this former British colony a chance to start a new life here.

This shouldn’t be too surprising. Attitudes have undeniably changed for the better over the past three decades. Hongkongers are also well educated, share our language and have a deep understanding of British institutions and traditions.

They will of course need some assistance settling in. Jobs and housing will be the key areas they need most help in according to community group Hong Kongers in Britain.

One obvious action the government could take would be to exempt Hongkongers from the incoming additional stamp duty on overseas buyers.

The levy should be abolished completely given international investors are a crucial source of development finance, especially in the major cities where homes are most needed. But at the very least Hongkongers should be excluded from paying.

The Greater London Authority and Mayor, working with London boroughs, should also be proactive in welcoming and supporting Hongkongers. This is all the more pressing given some 700,000 non-UK born workers left the capital during the pandemic. While many will no doubt return, London should be making sure it is the number one destination for those leaving the city-state.

Source: Property Wire

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BNO visa sparks rise in UK property investment from overseas

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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London will remain “extremely attractive” despite 2% SDLT surcharge

Non-UK residents are now required to pay a 2% Stamp Duty Land Tax (SDLT) surcharge, but demand in Central London is unlikely to dampen.

UK resident companies that are controlled by non-UK residents may be required to pay, and the surcharge applies to freehold and leasehold purchases and on rents on the grant of a new lease.

The implementation will also see buyers who intend to live in the property required to pay the surcharge.

Under the new guidelines, individual buyers can have the surcharge refunded if they are in the UK for at least 183 days during any continuous 365-day period within two years referenced by the date of transaction.

Harry Buchanan said: “Despite the introduction of the additional stamp duty surcharge for foreign buyers today, we expect prime central London to remain an extremely attractive prospect for international buyers.

“In fact, we anticipate many more overseas buyers will return to the market once international travel restrictions are lifted.

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“We therefore expect demand to remain strong going forward, especially as the UK continues to roll out one of the world’s fastest vaccination programmes, which will boost economic activity in the coming months.

“We are already starting to see pent up demand from overseas buyers starting to build. Over the past two months, numbers of buyers visiting our website from the UAE have increased by 31%, while website searches from Hong Kong have gone up 33%.

“In particular, more buyers from Hong Kong are getting in touch following the UK’s offer of an easier path to citizenship for Hongkongers with British National (Overseas) passports.

“These buyers are specifically looking to become owner occupiers, and are particularly keen to be close to good schooling.

“The increasing demand we are seeing gives us a strong indication that interest in prime central London will continue to be high, especially for turn key properties that can double up as a lock and leave which we know tend to be most sought after by foreign buyers, as well as properties close to transport hubs.”

By Jake Carter

Source: Mortgage Introducer

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Hull investment on the up as overseas buyers snap up Anlaby Road property

A Chinese businessman has snapped up a high-end residential complex in Hull in the latest example of foreign investment in the city.

Anchor House has been sold by Hull property company, Westfield Homebuyers, the multi-million-pound deal being handled by city legal firm, James Legal.

Westfield founder Mike Clayton purchased the iconic property, in Anlaby Road, from a housing association at auction five years ago and spent the following year on a refurbishment that transformed it into a high-quality rental complex that is now home to a range of young professionals, including medical staff working at Hull Royal Infirmary and visitors to some of Hull’s major industrial employers.

Mike said: “It had been used to house tenants with a variety of issues, and so was built from concrete and steel to withstand vandalism, arson and other issues, giving it a very institutional feel.

“We took it back to brick inside and created a suite of high-end flats and studio apartments, as well as putting in communal cooking, garden and barbecuing areas, and even a gym and sauna.”

It was Mike’s long-term passion for property that inspired the qualified chartered surveyor to take on what proved to be a tough but rewarding project.

Anchor House is now at the epicentre of Hull’s ongoing regeneration, with MyPad Accommodation acting as management agent for the building, but Mike, who is entering semi-retirement, has now sold the complex almost fully let and was not surprised that it was an overseas buyer.

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“Hull represents a really good investment compared to traditional hubs like London, Manchester or Leeds, because property remains relatively good value here, while still returning solid rental yields, particularly with interest rates on traditional savings still historically low,” he said.

Dealing with an international purchase in the midst of a global pandemic was no mean feat, however, the transaction taking longer than the anticipated three weeks – the deal eventually went through after about six months.

Simon Young, managing director of James Legal, said: “We take great pride in supporting major projects like this which are key to the city’s infrastructure and ongoing development.

“It’s the latest example of how our team regularly pull out every stop to get transactions over the line for our clients, even in the most challenging circumstances – in this case, in the midst of a historic global pandemic.”

Danny Gough, managing director of MyPad, said: “This deal was a fantastic development for all the companies involved, and indeed for Hull as a city.

“MyPad will continue to manage Anchor House for this overseas buyer, who I understand hopes this will be the first of many similar investments in this locality.

“And he’s not the only one, we’re seeing many similar enquiries, week-on-week, from foreign investors who like the look of what Hull and surrounding area has to offer.”

By Deborah Hall

Source: Hull Live

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Property investment in 2021. A year of new opportunities?

There are reasons to be optimistic over property investment in 2021 and the UK market moving forward, according to Paresh Raja.

It’s safe to say that there will seldom be another year like 2020. It seemed like there was be no end to the unprecedented developments that caught businesses, consumers, and investors completely off guard. Of course, the primary instigator of said uncertainty was the Covid-19 pandemic; an ongoing crisis that governments worldwide are still clambering to tackle.

A few weeks into 2021, however, and it seemed as though we may soon be entering the period of post-Covid-19 recovery. As the UK prepares to come out from under strict lockdown, the rollout of the AstraZeneca/Oxford and Pfizer/Biotech vaccines signifies the beginning of a transition back to normality.

But how should investors be preparing for the “new normal”? Which asset classes are set for impressive performances over the coming 12 months, and which may struggle to adapt to the post-Covid-19 era?

Commentators and investment advisors remain divided on the answers to these questions. What I’m interested in, however, is how the British real estate market will perform in 2021.

As numerous assets struggled to handle the unprecedented uncertainty imbued into the markets due to Covid-19, British property was able to easily hold its value; and even post record gains.

In November the average price of a residential property in the UK experienced its highest level of growth seen since 2015, according to Nationwide signifying a marked end to the previous four years of property price stagnation. Again, according to the building society annual house price growth rebounded to 6.9% from 6.4% in January, prices were up 0.7% month-on-month, more than erasing the small decline seen in January.

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So, looking ahead, can the UK property market maintain this momentum? Can investors look forward to another year of gains for British property owners? Or could future unforeseen developments knock the industry off course, reversing the gains seen last year?

Life under lockdown

The UK’s third wave of Covid-19 resulted in a third national lockdown being declared at the beginning of 2021, concurrent with the UK’s departure from the EU. Such a state of affairs meant that, for the month of January at least, we were unlikely to see the high rates of transactional activity recorded last year. Although prospective buyers can still move home, the added logistical complications of doing so during lockdown means that a slight property market slowdown is likely.

I believe that there is a strong chance that 2021 may even surpass 2020 in positive property sector growth. After the current lockdown passes, I am confident that the high levels of activity seen last year will continue; further increasing the average price of UK property.

Investors should take note. In December, Rightmove predicted house price growth of 4% over the coming 12 months, citing the knock-on effects of lockdown as a motivator for prospective buyers. Having spent the majority of last year home-bound, they claim, UK homeowners will be desperate to move home to larger lodgings; a trend that Rightmove believes will easily offset any negative market developments. Based on my experience, I consider such an analysis to hold some truth. As such, I can’t imagine that any negative repercussions of the UK’s EU departure will seriously deter investment into British real estate to any measurable extent, at least in the short to medium term.

But, as with any potential investment, there are still risks involved. The aforementioned unprecedented market uncertainty in 2020 meant that many UK lenders had to withdraw their mortgage products from the shelves and imposed meticulous loan application review processes. Consequently, many saw elongated mortgage deployment times, and even increased rates of application rejections.

Those hoping to profit from any potential 2021 UK property price growth, then, would do well to seek out alternative lenders with in-house credit lines to ensure they can easily close on transactions. We have seen increased demand for our bridging loans from buyers, investors, and their brokers needing tailored, quick finance solutions for their property dealings. Unless traditional lenders successfully adapt to the new normal soon, I can only foresee this trend continuing.

SDLT changing soon

One of the reasons so many people were eager to purchase property last year was due to the stamp duty land tax (SDLT) holiday, which allowed them to knock up to £15,000 off the SDLT fee on any given property transaction.

This policy is now due to end on 31 March 2021, despite some calls from within the industry for it to be extended. As such, property professionals and commentators alike are expecting a surge in demand for property before this key date. The reason is simple: investors eager to capitalise on future UK property price growth will understandably wish to avoid the additional SDLT tax that property transactions after this deadline will incur.

For overseas buyers and investors, the incentive to complete on property transactions is doubly important due to another upcoming change to SDLT: the 2% overseas-buyer surcharge.

This new policy, due to be implemented on 1 April, will impose an additional 2% tax on property purchases for buyers who aren’t already UK residents. For said buyers, then, the difference in potential SDLT bills on transactions before and after these dates will be substantial; meaning that a rush to finish such transactions soon is expected. Given the tight deadline, property investors will prioritise lenders that can approve applications in good time and quickly deploy loans to successful applicants.

Investors should take note of the points highlighted above, as there are great reasons to be optimistic about the performance of the UK’s property market moving forward. If there are any key lessons that investors should take away from 2020, it is that you should never underestimate the resilience of bricks and mortar. Demand is clearly rife, which means we are set for another 12 months of busy marketing activity.

By Paresh Raja

Source: WI

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Revealed – where are the best places for property investment overseas?

Purchasing an overseas property can be daunting and complicated at the best of times, and this is even more so the case with the economic and travel uncertainty caused by the ongoing global pandemic.

According to the research team at online letting agency Mashroom, choosing the right location is the best place to start for successful property investment.

The agency has revealed which cities across Europe are the best cities for those looking to invest their money in real estate, with the capital of Norway, Oslo, maybe surprisingly landing at the top of the list due to its pro-landlord laws and high rental prices.

The city has the second-highest rental rates across Europe, with landlords charging an average of €25.30 (£22.82) per square metre.

For overseas buyers, London is often seen as a safe haven and it landed in second place in Mashroom’s list. The capital city has the third-highest rental rates in Europe, averaging at €20.10 (£18.13), and – something that many London landlords might dispute – the city also had the strongest pro-landlord laws out of all the cities in Europe, scoring 2 on the GlobalPropertyGuide.

Below, you can see the top 10 cities in Europe for property investment:

  1. Oslo
  2. London
  3. Paris (inside)
  4. Copenhagen
  5. Amsterdam
  6. Madrid
  7. Warsaw
  8. Prague
  9. Rome
  10. Brussels

For its report, Mashroom looked at the cities with the strongest pro-landlord laws in place and the average rental rates in each city, and ranked them accordingly.

Luxury resort releases its annual report

Sticking with overseas property and the news that Quinta do Lago, the exclusive residential resort situated in the Algarve, has released its annual real estate market report. Following careful evaluation from February 2020 to February 2021, the report revealed a significant rise in virgin plot sales, despite the challenges posed by Covid-19.

Sales at Quinta do Lago’s virgin plot development, San Lorenzo North, have doubled when compared to 2019 while enquiries have grown by nearly half (47%). Some 65% of the plot site is now sold with seven villas now fully built. Plot prices have reached an ‘impressive starting price’ of €3.2 million, up by 26% over the past seven years.

In addition, despite the pandemic, Quinta do Lago Real Estate witnessed a 52% increase in the number of leads this January, when compared with the start of 2020. The resort has also welcomed a 300% increase in sales at the beginning of this year.

“Our buyers invest in Quinta do Lago because they have trust in our luxury market and quality offering and currently, we are continuing to receive a steady stream of interest and enquiries,” Sean Moriarty, chief executive of Quinta do Lago, said.

“Our virgin plot sales at our exclusive development, San Lorenzo North, have been performing extremely well with a 100% increase in sales. This is the largest demand we have seen and ultimately comes down to flexibility – San Lorenzo North offers buyers’ the chance to build their own home tailored to their unique demands, which have never mattered more than in the last year. We are not anticipating any significant increases in property prices due to the impact of Covid-19.”

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Emerging property trends

Like many other parts of the world, Quinta do Lago has seen a change in buyer priorities and demands. Buyers are now more demanding when choosing a property due to the increased amount of time spent at home, with a second home no longer viewed as a lock-up-and-leave bolthole but a safe space for someone to base themselves more permanently.

Because of the huge increase in working from home, high-speed internet is now a necessity and the importance of being located near to a top international school is also on the increase.

People are now changing the way they buy and view properties, too, with buying remotely becoming far more commonplace. Quinta do Lago Real Estate reported fewer property tours pre-purchase (due to travel restrictions, one site visit will now close a deal as opposed to three).

Unsurprisingly, there has also been more demand for real estate technology and digital tools, for example 3D guided virtual tours, to give people a good indication of the home they are going to buy without actually having to be there.

When it comes to buyer nationality, the UK continues to be Quinta do Lago’s strongest market despite the twin challenges of Covid and Brexit.

There has also been growing interest from the domestic market, increasing from 11% to 20%, while other feeder markets include Ireland. Interest from Belgium, The Netherlands, Germany, Luxembourg and Switzerland is also continuing to grow.

Quinta do Lago has also found that the average age of buyers at the resort is falling significantly as it becomes a more family-focused and lifestyle destination. Since Covid, there has been a growth in enquiries from young families and three-generational families who are looking to move to a safe community with green, open space.

Lastly, the demand for the Golden Visa scheme remains low in this part of the Algarve – which will be disqualified from the scheme from the start of next year anyway – with more buyer interest in the tax benefits granted by Portuguese legislation, such as via the NHR scheme.

What are the investment opportunities?

Despite Covid-19, the team at Quinta do Lago say the last year saw fantastic investment opportunities at the luxury resort, with the estate utilising the quieter time to improve and enhance their offering.

This included a new real estate project, Wyndham Grand Algarve Residences, on which Quinta do Lago Real Estate has been appointed the sole local agent.

Popular seafood restaurant Casa do Lago also received a £1.25 million (€1.4 million) renovation and the golfing resort’s renowned South Course saw a £7 million (€8 million) investment. Following on from the launch of the Quinta Farm back in 2019, the resort has also announced a new sustainability strategy in the form of new measures ‘that will foster nature, conserve resources and support the community’.

With a property market that is continuously developing, Quinta do Lago boasts a variety of luxury homes including new builds, re-sales and rentals. All feature ‘top-of-the-range amenities and beautiful, high specification interiors’.

The area remains a low-rise, low density and ecologically driven region, consistent with its original masterplan, established more than 45 years ago.

To ensure this is preserved, careful building restrictions are in place which means new developments are limited to just 9% amongst 2,000 acres of terrain and three renowned golf courses, all situated in the protected nature reserve of Ria Formosa.

“Covid-19 is going to affect our view of modern living and more importantly, our priorities. British buyers are giving even more value to nature, green living, safe spaces, and low-density environments,” Moriarty added.

“The Algarve, and especially Quinta do Lago, lends itself perfectly to this new approach. Nestled within the privacy and security of the Ria Formosa nature reserve, we enable families, friends and individuals to live a clean, heathy and active outdoor lifestyle all year round. We are committed to providing people with an opportunity to invest in their lives, improve their quality of living and reconnect with the natural world and for these reasons, I think our future is very bright.”

It’s expected to be announced today by the Transport Secretary, Grant Shapps, that Portugal will be removed from the government’s red list of countries from which travel is severely restricted, as case numbers in the country have fallen swiftly – along with hospitalisations, deaths and patients in intensive care. The Algarve, for example, recently went nearly one week without a Covid-related death.

Portugal has been placed on the red list since it was launched in mid-January, largely because of its close relations with Brazil – source of a ‘variant of concern’. While international travel is banned in the UK until May 17, there is hope that travel between the two countries may now become easier this summer.

By Matthew Lane

Source: Property Investor Today

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Hong Kong Buyers Rush For Properties In The UK

There has been a significant increase in the number of people from Hong Kong buying property in the UK, estate agents report.

Research shows that Hong Kongers became the fifth largest foreign investors in central London as of last August and have been driving up prices in some popular districts outside the capital.

Some people are investing in the UK’s buy-to-let market, while others are making preparations to move to the UK to live.

A visa scheme to allow Hong Kong residents to come to the UK opened almost four weeks ago, with some 300,000 people expected to apply.

The visa, which is open to holders of a British National (Overseas) passport and their immediate dependents, will offer a fast track to UK citizenship.

The UK launched the new visa after China imposed a new security law.

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Those who apply and secure the visa will be able to apply for settlement after five years and then British citizenship after a further 12 months.

About 7,000 people from Hong Kong have already been allowed to settle in the UK since July, the Home Office said.

“It’s become much more of a trend in the past six months or so,” Guy Bradshaw, head of London Residential at Sotheby’s International Realty told Reuters. “I’ve certainly been involved in a lot more conversations and Zoom calls with people in Hong Kong and funds in Hong Kong.”

Marc von Grundherr, director at Benham and Reeves, said he has seen the same trend.

“I’ve had a few clients come to us and say, ‘Look, my son or my friend is wanting to invest in property because they’re thinking about coming [to the UK], but they can’t afford to do it on their own or they want to buy something slightly different – is it okay with two or three or four of them buying together?”

“That’s a change. Obviously, you always had larger investment companies who bought large amounts of stock, but we’re talking not the very, very, very wealthy,” von Grundherr said.

By MARC DA SILVA

Source: Property Industry Eye

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Hong Kong Residents Are Buying More Houses To Rent

Hong Kong residents are buying more houses and apartments to lease out for income in Britain, property agents say, a trend that coincides with what many expect to be a wave of emigration after China passed a national security law last year.

Hong Kongers became the fifth largest foreign investors in central London as of last August and have been driving up prices in some popular districts outside the UK capital.

But the new wave of buying also includes some Hong Kong residents who are pooling money to invest, a trend property agents expect to continue as more middle-class Hong Kong residents consider leaving for Britain and look to establish a source of revenue in advance.

“It’s become much more of a trend in the past six months or so,” Guy Bradshaw, head of London Residential at Sotheby’s International Realty told Reuters. “I’ve certainly been involved in a lot more conversations and Zoom calls with people in Hong Kong and funds in Hong Kong.”

The UK government is offering a new visa to Hong Kong holders of British National Overseas (BNO) passports that gives them a chance to become British citizens – a change it made after China’s national security law for Hong Kong.

A steady rental income would be useful in applying for the citizenship, as the BNO holders need to prove they can provide financial support for themselves for at least six months.

London estimates that over 300,000 Hong Kong residents could emigrate over the next five years, and Bank of America expects Hong Kong residents moving to Britain could trigger capital outflows of $36 billion in 2021.

While Hong Kong residents have long been active buyers of homes in Britain, real estate agents say more recently there has been increasing interest in older apartments and houses as rental assets.

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Hong Kongers have an affinity for real estate investment, with property prices in the Asian financial hub among the most expensive in the world.

Alan Wan, 38, who owns 13 residential properties in Britain, launched classes in Hong Kong two years ago – at the height of anti-government protests in Hong Kong – aimed at potential investors in properties in and around Manchester.

So far, his “UK Property Owner Association” class has attracted around 1,500 students. Enrolment spiked in the second half of last year after Beijing imposed the national security law.

One of Wan’s students, 30-year old Isla Kwok, who moved to Manchester in late January waiting to start a degree, is using the rental income she receives from a terraced house bought in 2019 to finance the cost of renting a smaller flat and mortgage payments.

She plans to re-mortgage her first property to buy a second one this year after getting a residence permit, as mortgage interest rates will be much lower.

“Once you’ve started your first property, it’s much easier to create more income to ease the financial pressure of living here,” Kwok said.

Wan said most of his students bought their properties individually, but he also had some who pooled money to buy in London.

Marc von Grundherr, director at realtor Benham and Reeves in London, said he has seen the same trend.

“I’ve had a few clients come to us and say, ‘Look, my son or my friend is wanting to invest in property because they’re thinking about coming (to Britain), but they can’t afford to do it on their own or they want to buy something slightly different – is it okay with two or three or four of them buying together?”

“That’s a change. Obviously you always had larger investment companies who bought large amounts of stock, but we’re talking not the very, very, very wealthy,” von Grundherr said.

Reporting by Clare Jim in Hong Kong and William James in London

Source: Reuters

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What Do The UK’s High House Prices Mean for UK Expats?

With UK house prices at their highest since 2017, we look at where this growth is most concentrated and what it means for UK expats looking to invest.

According to Zoopla, one of the world’s leading property portals, UK house prices are nearing their highest levels in four years – an average of £223,700. As of the end of January, house price growth reached its highest since April 2017 – 4.3%. But what does this mean for UK expats and overseas buyers looking to invest in buy-to-let UK property and are mortgages as readily available as before to UK expats and overseas buyers?

House Prices Across the UK.

As predicted, the start of 2021 has seen the UK housing market continue its strong performance. This is no doubt due, at least in part, to the imminent closure of the UK’s stamp duty holiday as people rush to complete on transactions and take advantage of the potential savings. Another factor stimulating the continued upward growth of the housing market is a lack of supply coming onto the market. As an expat looking to invest in a UK buy-to-let property, there are a few things to be aware of in the current marketplace.

“Over the last few years, much of the growth in house prices is being driven by the North. In particular, Liverpool and Manchester – two cities which are really head and shoulders above the rest when it comes to investment prospects” says Stuart Marshall. “Liverpool is currently experiencing the fastest rate of house price growth in 15 years with prices up 6.3% compared to the same point last year. Unsurprisingly, Manchester is also delivering fast price growth, up 6% from this time last year.”

“Wales continues to improve as an investment prospect with its countrywide growth rate up 5.4% from January 2020. This is no doubt driven by the massive growth of major cities like Cardiff, which continue to perform well for buy-to-let purposes and are increasingly popular for expat buy-to-let investors. The improved popularity of the ‘staycation’ is also partly to thank for Wales’ promising growth as more people have started to explore living in coastal and more rural areas, and Wales has many features which really suits their wish list.”

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Where are the Hottest Regions for Investment?

“The North. The North. The North. This is what we see day in, day out at Liquid Expat Mortgages. We’ve been really singing the praises of Northern investment for a number of years now and, more and more, the figures are really showing this to be sound advice.”

In the North East, North West and Yorkshire and Humber, price growth is at a 10-year high – the highest rate since before the global financial crash (an annual rise between 3.8% and 5.4%). This rapid rise in prices is increasingly encouraged by the affordability of property in these areas – a factor that is hindering growth in Southern regions. Though London is also seeing growth – 2.9% compared to January 2020 – it pales in comparison to other investment hotspots across the country, plus entry prices are a lot higher and so can be prohibitive for a lot of investors.

The Picture for Expats Looking to Invest.

“For expats looking to invest in buy-to-let property, eyes should be looking toward the regions mentioned above. Not only are properties in these areas far more affordable than other popular areas of the UK, but prices are projected to continue growing and rental yields are also high. For expats, buying now could mean strong profits from renting your property – as consumer demand is incredibly high in Northern hotspots like Manchester and Liverpool – and good financial gains when you come to sell the property as its likely to appreciate.”

“For those expats willing to wait to invest, the near future could hold even better investment prospects. Currently, market conditions created in 2020 look set to continue through the start of 2021. This means that the number of homes available is low and demand for them is high, resulting in higher prices. But, despite a strong start to 2021, prices are still projected to slow to 1% growth by the end of 2021. For those expats who are in no rush to buy, buying in a less competitive marketplace could make all the difference for the quality of your investment.”

In the aftermath of Brexit, expat buy-to-let investors were able to capitalise on a weak pound, low confidence from domestic consumers and political instability in the UK. It’s possible that we could again see a similar set of circumstances in the coming months, as initiatives like the UK’s furlough and self-employment income support schemes come to an end. As more homes come onto the market and new buyers become reluctant to buy or invest – or even pull out of proposed opportunities – the opportunity to pick up a great deal will become more common for discerning UK expat investors.

“It’s really important to adopt a holistic view of the situation – both of the UK housing market in general and of your specific circumstances as an investor. Often, prospective investors can be too close to the situation to really take stock of their needs and what they want out of their investment. This is where an expert broker comes in as we’re able to assess your overall objectives and marry them to the right type of expat mortgage product.”

Source: Ein News

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