UK house prices
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Hong Kong Buyers Rushing to Buy UK Property

There are increasing numbers of Hong Kong residents who are looking to buy UK property. This is largely as a result of the evolving political situation in Hong Kong. Many Hong Kongers seeking UK property are taking advantage of the UK’s visa scheme for BNO passport holders, which was introduced in 2021. The visa programme provides a fast-track to British citizenship and was announced as a reaction to Beijing’s newly imposed national security laws which were seen to breach the 1984 Sino-British declaration which guaranteed certain freedoms to Hong Kong citizens for 50 years.

Between June 2021 and 2022 alone, Hong Kong has seen 121,500 people leave, with many of these taking the UK government up on its offer of fast-tracked British citizenship. In fact, the UK government has received 140,500 applications already.

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Hong Kong Buyers Looking to the UK
‘The UK has been a popular location for Hong Kong investors for a while. This is because it’s extremely affordable for most Hong Kong buyers compared to their expensive domestic market. The exchange rate from Hong Kong dollars to British Sterling also makes this a favourable purchase, especially given the current state of the Great British Pound. Strong rental yields and capital growth offered by UK property have also served to compound the attractive nature of UK property for Hong Kong buyers. But with so many Hong Kong residents looking to move to the UK, at least on a temporary basis, the demand for UK property from Hong Kong has grown even more’ says Stuart Marshall of Liquid Expat Mortgages.

‘We’ve seen a huge increase in enquiries from Hong Kong. But there are a number of common issues that Hong Kong buyers encounter. One of the most common early hurdles that Hong Kong buyers come across is that they are trying to use a high street lender. Such lenders are usually not equipped to properly serve a borrower from Hong Kong. A specialist mortgage broker, on the other hand, will have the infrastructure to put Hong Kong borrowers in touch with specialist lenders who have foreign national – and, in some cases, Hong Kong – specific deals.’

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Mortgage Deals Available for Hong Kong Buyers
A positive for Hong Kong investors in the UK is that, because of the demand at the moment, lenders are creating deals specifically for Hong Kong investors to satisfy the need for specialised products in the marketplace. ‘Lenders have been working with brokers to understand the specific needs of Hong Kong borrowers and work on crafting products that meet these needs. These products are available for a wide variety of uses on both residential and buy-to-let properties, new purchases and re-mortgages.’

Source: EIN News

HNWIs
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Weak Pound Encouraging Overseas Investors To Buy UK Property

When the mini-budget tanked the pound to record lows against the dollar, overseas buyers again began circling UK property in increasing numbers.

While many overseas investors are better off when buying UK property compared to the start of 2022, the same is not true for domestic buyers who are contending with a number of difficulties including energy prices, high inflation and heightened interest rates.

For those foreign nationals paying in US Dollars, the average UK home now costs 14.8% less, with the average London property costing 16.5% less.

The huge savings UK expat and foreign national investors are making because of a weak pound are doing a great deal to offset the rising mortgage rates.

A weak pound is encouraging overseas investors to buy UK property for comparatively cheaper prices as domestic buyer competition wanes.

Domestic investors will be forced to watch on as house prices continue to climb while the weakening pound is presenting excellent investment opportunities for UK expat and foreign national investors.

Economic and political turbulence has continually contributed to a weaker pound in recent times. When the mini-budget tanked the pound to record lows against the dollar, overseas buyers again began circling in increasing numbers. And though the turbulence seems to be stabilising somewhat, international buyers are still keen to purchase UK property. Here’s why it’s important for UK expat and foreign national investors.

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What Does a Weak Pound Mean for Overseas Investors?

For those foreign nationals paying in US Dollars, the average UK home now costs 14.8% less, with the average London property costing 16.5% less. ‘This is the kind of difference that currency fluctuations can make’ says Stuart Marshall of Liquid Expat Mortgages. ‘While domestic buyers will feel the effects of a weak pound across the board on any imported item them buy, a weak pound is leaving property comparatively cheaper despite house price growth. For example, in London, prices have risen by 4.9% so far in 2022. However, foreign nationals buying in US dollars are paying a sixth less than at the start of 2022. Buyers in the UAE are benefitting to almost the same degree saving 14.5% on the average UK property and 16.2% on the average London property, while buyers are saving 13.9% and 15.6% in their native currency.’

What Does a Weak Pound Mean for Domestic Buyers?

Domestic investors will be forced to watch on as house prices continue to climb while the weakening pound is presenting excellent investment opportunities for UK expat and foreign national investors. While many overseas investors are better off when buying UK property compared to the start of 2022, the same is not true for domestic buyers who are contending with a number of difficulties including energy prices, high inflation, heightened interest rates and low confidence in the economy and housing market.

Domestic buyers will see their buying power reduced further, as their day to day lives become more expensive since the weak pound will mean that imports cost more. This, in turn, pushes up inflation and is likely to cause interest rates to be raised again in an effort to curb soaring inflation.

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The Bigger Picture.

‘Of course, currency rates are not the be-all-end-all, but they are certainly a big win for UK expat and foreign national investors. However, the huge savings they are making because of a weak pound are doing a great deal to offset the rising mortgage rates. And while the higher mortgage rates are adding to the cost of investment, rental profits are also incredibly high due to the large numbers in the rental market. In fact, each property available to rent currently has 11 prospective renters trying to secure tenancy on the property. This competition is pushing up rental prices and rental profits for discerning investors and these higher yields are also lessening the effects of the higher mortgage rates.’

‘Because of the dampened domestic market, UK expat and foreign national investors are also finding it easier to pick up a bargain as the number of properties on the market has been growing over the spring and summer, leading to greater choice, slower sales, and an increased number of price reductions. Further, though house price appreciation over the pandemic is translating to affordability constraints now for domestic buyers, the types of properties that are popular for UK expat and foreign national investors are quite different. Namely, many UK expats and foreign nationals have been opting to invest in city centre flats, as these properties are particularly popular in the rental market. This is good news, considering the fact that the average house price has grown five times more than the average cost of a flat since 2020.’

‘Lastly, it’s worth mentioning that UK expat and foreign national investors will be shopping in a different mortgage market than domestic investors. While domestic buyers saw a third of all mortgage products removed from the market after the mini-budget, the UK expat and foreign national mortgage market is constantly trying to introduce new products to meet specific customer demand. With the weak pound lending strength to overseas buyers, it’s likely that lenders will be trying to introduce new products to entice business from this lucrative sector. This means that UK expat and foreign national investors will frequently see lower rates and better deals, compared to domestic investors.’

‘Investing in UK property is one of the best financial decisions that UK expat and foreign national investors can make – and the enduring popularity of this form of investment is testament to this. The weak pound is only making this proposition more inviting and, along with a competitive UK expat and foreign national mortgage market, is doing a lot to offset the damage done by house prices and mortgage rates. For canny UK expat and foreign national investors, it’s important to keep track of the market developments as things are changing every day, and the turbulent political scene is influencing a lot. For example, the recently announced stamp duty break is good news for first-time UK expat and foreign national investors and will further add fuel to the investment fire. A specialist UK expat or foreign national mortgage broker can help their clients to keep abreast of this situation and invest at the perfect time for them.’

Source: MENAFN

Overseas property buyers
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Overseas buyers look to snap up London property as weak pound takes demand to ‘new levels’

Demand in London property from foreign investors is at “new levels” as they rush to make the most of the weaker pound.

The pound steadied in early trading in Asian markets on Tuesday, recovering ground slightly from the record low of 1.0327 against the dollar on Monday morning.

Sterling was standing at around $1.08 early on Tuesday but this is still significantly lower than before chancellor Kwasi Kwarteng’s mini-Budget, which sent the currency spiralling last Friday.

One London estate agent, Chestertons, has said that the dip in the value of the pound has driven interest from overseas buyers, who can now get more with their dollars.

“London already attracted overseas buyers back to its property market since the easing of travel restrictions but the weaker pound is taking demand from foreign investors to new levels,” Matthew Thompson, head of sales at Chestertons, said.

“Bearing in mind the dollar’s beneficial exchange rate against the pound, our branches have registered a particular boost in buyer enquiries from US citizens or residents of country’s where the dollar is a primary currency.”

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He continued: “To maximise the saving that can be had due to current exchange rates, buyers are especially drawn to some of London’s priciest neighbourhoods such as Knightsbridge, Mayfair and South Kensington.

“Only 6 months ago, a property that is on the market for £4million, would have cost around $5.23million. At the current exchange rate, the same property costs around $4.32million which is a saving of almost $1million.”

Rory Penn, head of London sales at Knight Frank, said that there has been “a pick up from international buyers who see a buying opportunity in London.”

“US buyers are either looking for best-in-class turnkey residential development or family houses and apartments,” he said, “particularly lateral space with high ceilings and period features.”

Arthur Lintell, who works in Knight Frank’s Notting Hill office, said that the North London residential area had seen particular interest from US buyers.

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“Favoured amongst Americans, Notting Hill has seen a recent surge in interest from US or dollar pegged buyers all keen to take advantage of the recent buying window,” he said.

“One in particular, an ex-Notting Hill local who relocated to New York 15 years ago, is now returning, as the opportunity is too good not to miss as their children start Notting Hill Prep next year. In their words: ‘The timing could not be better for us right now’.”

Naeem Aslam, chief market analyst at AvaTrade, said: “Given the weakness of the British pound, we may see foreign investors buying property in the UK as the currency has depreciated that much. For many, this could be a once in a lifetime opportunity.”

In an attempt to steady the markets on Monday, the Bank of England said that it “will not hesitate” to raise interest rates. However the pound fell after the joint statements from the Bank and its governor Andrew Bailey amid concerns that they had ruled out an emergency rise in rates.

The next interest rate decision is scheduled for 3 November.

Following the fall in the pound, some mortgage deals have been withdrawn by banks and building societies. Virgin Money and Skipton Building Society halted offers for new clients and Halifax said it would stop mortgages with product fees.

By Holly Bancroft

Source: The Independent

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Pound’s weakness could boost overseas investment in ‘resilient’ Scots property market

Sterling’s weakness could boost overseas investment in a “resilient” Scottish commercial property market, industry experts believe.

Property consultancy Knight Frank found that investment volumes in commercial property north of the Border rose by 37 per cent during the first nine months of 2022 compared to the same period last year, increasing to £1.46 billion from £1.06bn.

Offices were the most popular asset type, accounting for just over one-third of total investment volumes. Investment in industrial property almost doubled, from £157 million to £300m, as interest levels in the sector continued to increase following the pandemic.

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The research found that overseas investors remain the most active buyers of Scottish commercial property, accounting for 53 per cent of investment volumes. UK property companies increased their investment levels from £312m last year to £518m in the latest nine-month period.

Investment volumes in Aberdeen more than doubled from just over £54m in the first nine months of 2021 to £116.9m, buoyed by the sale of two retail parks. Edinburgh saw investment volumes increase 24 per cent to £415m, while Glasgow increased by 6 per cent to £377m.

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Alasdair Steele, head of Scotland commercial at Knight Frank Scotland, said: “There has been a great deal of uncertainty this year, starting with the complications of the ongoing pandemic, the conflict in Ukraine, and rising inflation and interest rates, but Scotland’s commercial property market has continued to fare well. This is particularly true for assets that are in high demand, namely prime offices and industrials – but alternatives, particularly hotels, are increasing in popularity.

“The summer period was relatively quiet after a flurry of deals were completed in the lead up to June. However, as we move into the final quarter, there remains a significant amount of dry powder waiting to invest and commercial property is traditionally seen as offering a good hedge against inflation – particularly for overseas investors, with the pound’s current weakness. We could see them take an even more active interest in the market in the remainder of 2022 and into next year.”

He added: “We anticipate a busy end to a challenging year, provided the macro-economic situation does not change materially and the right stock is made available.”

By Scott Reid

Source: The Scotsman

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Truss to announce stamp duty cut – report

UK housebuilders rallied on Wednesday following a report that Friday’s mini-budget could include a plan to cut stamp duty.

According to The Times, prime minister Liz Truss will announce the move in the mini-budget in an attempt to drive economic growth. It was understood the PM and chancellor Kwasi Kwarteng have been working on the plans for more than a month.

Truss believes that cutting stamp duty will encourage economic growth by allowing more people to move and enabling first-time buyers to get on the property ladder, The Times said.

It cited two Whitehall sources as saying that cuts to stamp duty were the “rabbit” in the mini-budget, which the government is billing as a “growth plan”.

Under the current system, no stamp duty is paid on the first £125,000 of any property purchase. Between £125,001 and £250,000 stamp duty is levied at 2%, £250,001 and £925,000 at 5%, £925,001 and £1.5m at 10% and anything above £1.5m at 12%. For first-time buyers the threshold at which stamp duty is paid is £300,000.

During the pandemic, then chancellor Rishi Sunak lifted the stamp duty threshold to £500,000.

At 0910 BST, Persimmon shares were up 5.4%, while Taylor Wimpey and Barratt were up 4% and Berkeley was 3.5% firmer. On the FTSE 250, Redrow was 5.6% higher, while Bellway and Crest Nicholson were up 3.6% and 3.4%, respectively.

Tom Bill, head of UK residential research at Knight Frank, said: “Nobody can accuse the new government of lacking an economic vision. If its low-tax approach extends to stamp duty, recent history tells us it will trigger higher levels of demand in the housing market at a time when mortgages are getting more expensive, which will support social mobility.

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“Prices could move higher in the short term if supply initially struggles to keep up but more balanced conditions will return provided the cut is immediate and permanent.”

Neil Wilson, chief market analyst at Markets.com, referred to the potential stamp duty cut as “the old Tory trick of juicing the housing market in its heartlands to boost confidence (wealth effect) whilst doing not a lot for housing supply”.

“I’m not for concreting over the green belt at all, but there will be questions about the economic soundness of this policy, as there always is. However, with interest rates rising so quickly, an offset to the cost of buying a home would grease the wheels of the market -without higher rates could cause the housing market to seize up.”

He added: “Clearly a stamp duty cut is good news for housebuilders who can expect higher selling prices as a result.”

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, argued that a stamp duty cut could do more harm than good.

“Buyers are unlikely to be unhappy at the prospect of a tax cut, but if the government chooses to cut Stamp Duty in an effort to stimulate the housing market, there’s a risk it could do more harm than good.

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“It’s easy to see why the government is concerned about the housing market. We’ve seen demand fall consistently since May, when rocketing bills, rising house prices and ever-increasing interest rates started to take a toll on buyer enthusiasm. There’s a risk that if rate rises accelerate, pressure on buyers could reach a tipping point, where demand dries up.

“We know from very recent experience that a Stamp Duty holiday can stimulate demand. However, the only reason these holidays work is because people feel they have a small window of opportunity to take advantage, otherwise they’ll miss out. The point at which they think they can just wait for the next one, they will start to become less effective.

“Even if it does stimulate demand, it overlooks the fact that the real brake on the property market is a severe shortage of supply. With an average of 36 properties on each agent’s books, we’re still close to an all-time low in the availability of property for sale. Driving demand without addressing supply would risk more buyers chasing a tiny number of properties, which would push prices up.

“By ramping up prices at a time of rising mortgage rates, the end result would be higher monthly mortgage costs, which would be increasingly unaffordable. And the Stamp Duty holiday wouldn’t help on this front. This in itself could be enough to put buyers off, and if it deters enough of them, it could end up having the opposite impact to the one that’s intended.”

By Michele Maatouk

Source: Sharecast

UK house prices
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London rental properties letting within minutes

One lettings agency in London says that tenant demand is so great in the capital for rental properties that many homes are being let within minutes of becoming available.

Benham and Reeves point to demand created by the return of professionals and international students, along with the growing shortage of available properties to rent, for creating a ‘challenging market’.

Tenant enquiry levels have continued to increase over the summer, across the firm’s 19 branches.

They say this is the ‘Most competitive London rental market that we have ever known’.

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Many branches have had almost no stock
In addition, tenants are finding that many branches have had almost no stock available, at best one or two apartments available to rent.

In a market update, the agent says: “Many properties are renting within hours – and some within minutes – as applicants immediately make an enquiry as soon as a property goes live on our website.

“This is swiftly followed by a full asking rent offer and once agreed, a holding deposit – so anxious are they to secure a property.

“This of course is great news for buy-to-let investors who, in many parts of the capital, are seeing their rental properties let immediately with voids at an absolute minimum. Sometimes just a day or two.”

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London is now a ‘landlord’s market’
The update also makes clear that the imbalance between supply and demand means that London is now a ‘landlord’s market’ with property investors expanding their property portfolios.

And rents are rising to pre-pandemic levels – some are now 10% higher.

Investors from overseas are also finding that the weakness of sterling makes London property considerably more affordable, while the shortage of rental properties means demand is the highest that the agent ‘has ever seen’.

Professionals returning to live and work in London, along with international students, are fuelling demand.

In some areas, including the City and east London, around 85% of applicants have been international students.

With the rental market so competitive, tenancy renewals remain at an all-time high – often more than 90% of existing tenants are renewing because they see there is a limited choice of properties available.

Source: Property 118

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Overseas investors ‘will not be deterred’ from UK property by new rules

Despite measures and additional taxation to curb overseas investors in UK property, the asset class still holds great allure for a number of reasons.

On 1 August 2022, a new register of overseas entities was launched in the UK. This means anyone investing in or acquiring property in the UK from abroad will need to register with Companies House.

The aim of the register is to prevent individuals or companies buying property with illicit funds, but some believe the additional paperwork could serve as a deterrent for some legitimate overseas investors.

However, David Hannah, group chairman at Cornerstone Tax, believes the UK property market will still provide enough of an attraction to foreign buyers for myriad reasons, as it still presents an “exciting opportunity”.

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Big demand from overseas investors
Hannah points out that the UK property market is very much an international market, and it can therefore be affected by geo-political events all over the world.

“Even if domestic demand cools, I think international demand will increase and the UK market will be affected because of it. I don’t think foreign investment will be overly deterred by the new rules coming into place on 1 August.

“Property in the UK represents an exciting opportunity for foreign buyers because of the drop in the value of the pound.”

The historic house price growth has always provided an attraction to overseas investors, gaining the sector a reputation as a safe haven as it generally shows less volatility than many other asset classes.

In recent years, this growth has been even stronger due to a range of contributing factors.

Hannah comments: “UK house prices continue to rise at a staggering rate domestically, being pushed higher by factors such as the influx of oversea investors.

“In the past, factors such as the stamp duty holiday have caused more people to consider buying property. However, due to the increase in average house prices, it has made it more difficult than ever for buyers to purchase their first property.

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What’s in the pipeline?
Recent data revealed that overseas investors now own around £90.7bn of property in England and Wales. Around half of this (£45.3bn) is concentrated in London, which has historically attracted the most attention from foreign buyers.

This was according to research from Benham and Reeves, which also named the south east and the north west as the top two property investment destinations for those living abroad, after the capital. Overseas owners have around £15.6bn tied up in the south east, and £7.6bn in the north west.

In total, according to Benham and Reeves, 247,016 properties across England and Wales are owned by overseas investors. As well as the highest value of properties, the highest number of these can be found in London, with 85,451 foreign-owned.

One of the biggest draws in recent years has been the falling value of the pound, which makes it cheaper for overseas investors buying property here.

A challenge for anyone buying property right now in the UK is the supply gap, as less sellers have been coming to the market.

Hannah notes that the 24% rise in prospective sellers putting homes on the market offers hope that this trend could be easing, “thus causing a more manageable supply and demand level and potentially slowing the rapid rise of property prices”.

The register will also be applied retrospectively to property bought up to 20 years ago in England and Wales and since December 2014 in Scotland. UK property owners who live overseas should ensure they are up to date on the latest requirements.

Source: Buy Association

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Will new disclosure rules deter foreign buyers?

The UK property market continues its upward trajectory as recent data from Halifax shows that the average house price now stands at £294,845, which represents a 6.8% rise, or £18,849 since the start of the year.

Supply-demand imbalance continues to be the main contributor to the rising prices.

With inflation in the UK rising to 9.4% in the year to June – marking its highest rate in 40 years, many are expecting a sharp decline in the property market, but the influx of foreign investment for properties in the UK could continue to push house prices higher. Recent research from Benham and Reeves shows that overseas nationals now own almost 250,000 homes across England and Wales – amounting to £90.7 billion worth of property.

London continues to be home to the highest value of foreign-owned homes, with all of the city’s top five property deals in 2021 – all of them worth £20 million or more – involving Chinese billionaires according to Beauchamp.

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Following sanctions imposed to Russian investors there were fears that foreign investment would falter, however Chinese investors seem to have picked up the slack. There are now 85,451 properties (amounting to a total value of £45.3 billion) in the capital owned by oversea investors who are able to take advantage of the UK’s thriving market.

The drop in the value of the pound, which has fallen by 11% since the start of the year, seems to be one of the major appealing aspects of buying property in the UK. 61 luxury properties in London – each worth more than £10 million, have been sold in the first six months of 2022 – representing the highest number in a decade.

Even though overseas buyers are an important segment of the market throughout the UK, there have been attempts to deter foreign investment.

There will be an introduction of new rules that will come into force on 1 August. The new register of overseas entities maintained by Companies House means that buyers will be forced to declare their ownership and provide details of beneficial owners.

The register will be publicly available at Companies House and intends to dissuade individuals looking to buy UK properties with illicit funds. It is unclear how significant this new regulation could be and whether it will deter foreign investment in the UK property market.

David Hannah, Group Chairman at Cornerstone Tax, is not convinced that it will.

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“What people must consider is that the UK property market is an international market, meaning it can be affected by geo-political events all over the world.

“Even if domestic demand cools, I think international demand will increase and the UK market will be affected because of it. I don’t think foreign investment will be overly deterred by the new rules coming in to place on 1 August.

“Property in the UK represents an exciting opportunity for foreign buyers because of the drop in the value of the pound.

“UK house prices continue to rise at a staggering rate domestically, being pushed higher by factors such as the influx of oversea investors. In the past, factors such as the stamp duty holiday have caused more people to consider buying property. However, due to the increase in average house prices, it has made it more difficult than ever for buyers to purchase their first property.

“There is hope that more available properties will enter the UK housing market and the latest House Price Index shows an increase of 24% in the number of prospective sellers bringing homes to the market – thus causing a more manageable supply and demand level and potentially slowing the rapid rise of property prices.”

By EYE CORRESPONDENT

Source: Property Industry Eye

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Knight Frank: Scottish commercial property investment hits pre-pandemic levels in first half of 2022

Scottish commercial property enjoyed its best first half of the year for investment volumes since 2018 as the market continued its recovery from the Covid-19 pandemic, according to new analysis from Knight Frank.

The independent commercial property consultancy found that £1.2 billion of commercial property deals were agreed between January and June 2022, up 54% on the same period last year. The figure is also 21% ahead of the five-year average – albeit, this was skewed by low investment volumes during 2020 and, to a lesser degree, 2021.

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Overseas investors represented more than two-thirds (68%) of the total investment figure, equivalent to £843 million, with UK property companies the second most active buyers totalling £296m – 23.9% of overall investment volumes.

Investment in retail assets increased by more than 55% on 2021, rising from £148m to £230m with retail warehousing accounting for £165m of the total figure. Offices were the most popular asset class with £410m worth of deals, boosted by the sale of HFD Group’s 177 Bothwell Street in Glasgow, in what is believed to be a record transaction for Scotland.

Edinburgh saw £400m of investment, while Glasgow accounted for another £329m. Deal activity in Aberdeen continued to pick up, reaching £189m, largely from the sale of two retail warehousing assets.

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Alasdair Steele, head of Scotland commercial at Knight Frank, said: “The first half of the year has underlined a couple of key trends that have emerged over the last two years: retail warehousing and industrials remain in high demand, while prime offices are highly sought after – underlined by the deal for 177 Bothwell Street.

“Similarly, overseas investors accounting for such a high share of investment during the last six months also highlights the strength and depth of the buyer pool for Scottish commercial property.

“An uncertain macro-economic outlook will likely cool deal activity over the next couple of months. However, commercial property has typically acted as a hedge against inflation for investors and, with yields in Scotland’s main cities comparatively good value and supported by strong occupier markets, we expect interest to remain strong in the second half of the year.”

Source: Scottish Construction Now

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Foreign owners hold £90.7bn worth of property in the UK

Overseas nationals own almost 250,000 homes across England and Wales, the latest research by London lettings and estate agents Benham and Reeves shows.

In the current market, that is £90.7bn worth of property, suggesting that the UK remains a safe haven for foreign homeowners.

On a regional basis, London is home to the highest value of foreign owned homes, with the 85,451 properties belonging to overseas homeowners equating to a total value of £45.3bn.

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Westminster ranks top, with foreign owned homes commanding a current market value of £11.8bn, while in Kensington and Chelsea this total sits at £10.7bn.

Tower Hamlets ranks third, although some way off the top two, with overseas homeowners sitting on £3.7bn worth of property, followed by Wandsworth (£3.3bn) and Camden (£3.2bn).

Outside of the capital, Buckinghamshire is home to the highest value of foreign owned homes at £31.1bn, while Tandridge (£1.6bn), Liverpool (£1.4bn), Salford (£1.1bn) and Manchester (£1.1bn) also make the top 20 list.

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Director of Benham and Reeves, Marc von Grundherr, commented: “It’s not just domestic homeowners who have benefited from some extreme rates of house price appreciation in recent years and despite attempts to deter foreign interest, the value of homes owned by overseas buyers remains considerable, to say the least.

“While London is home to the highest concentration of foreign owned property market wealth, it’s certainly not confined to the boundaries of the capital alone, and overseas buyers remain an important segment of the market across England and Wales.”

By MARC DA SILVA

Source: Property Industry Eye