After the EU referendum in June 2016, some foreign investors began to shy away from UK property buying, but it seems the market is bouncing back.
Investors from across Europe have picked up the UK property investment pace, according to new figures published in The Times based on Hamptons International research, indicating a return of confidence in the country’s housing market since the Brexit vote.
The figures look specifically at London, where the proportion of properties sold to European buyers increased to 13% during the first half of this year, which is a markedly stronger performance than last year’s 10%. While London has been the hardest hit place in the country by the recent uncertainty surrounding Brexit, other parts of the country have continued to see strong levels of interest and activity, and it follows that the UK’s regions might also see a rise in European investment.
Prime central London, which includes areas such as Kensington & Chelsea and Westminster right at the heart of the capital, saw the biggest rise, with buyers from the EU making up 15% of property investments there in the first six months of the year, compared to 2017’s 10%.
UK still top choice for investors
Part of the reason behind the rise could be the weaker pound attracting investors from overseas to the UK’s cheaper shores, with a further fall this month of 0.8% against the euro, bringing the pound’s trading price to around €1.110 against the euro.
However, the UK still has one of Europe’s strongest property markets overall, and is still a popular choice among many overseas investors, while overall investment in the UK from abroad continues to rise at a steady pace according to the Office for National Statistics, up by 4% at the end of 2017.
With the prospect of a no-deal Brexit still on the cards, time will tell how it will continue to impact investor confidence, but so far the UK’s property market seems to be holding onto its strength and resilience in the face of the uncertainty.