Property investors from North America are catching up with Asian investors in acquiring UK assets, and their low risk, high value strategies are leading them away from London.
Investors from overseas are still attracted to the UK’s strong property market, and North American buyers have already invested a reported £2.7bn into commercial property in the country so far this year, according to research from online commercial property tool Datscha.
While London has always been a magnet for foreign investment, US investors are seeing the options elsewhere across the country, and are the “most widespread” buyers across the country at the moment with major commercial property purchases made in Yorkshire, the north-west and the Midlands in particular.
Most foreign investment still from Asia
This is in contrast to Britain’s biggest overseas investor type from Asia, who have spent around £4bn in the country so far this year with 90% of that investment concentrated in the capital.
Two-thirds of North American investment have been designated outside of London, with large-scale transactions including a £320m deal in the north-west and the Midlands to purchase 40 light industrial units, as well as the sale of the Northampton County Council’s headquarters for £64m.
With more than £26.9bn in total being invested into the UK so far this year from abroad, according to Savills, the weak pound is still proving a big attraction to foreign buyers, and most investors remain unfazed by Brexit.
North being targeted for better returns
According to reports by the Yorkshire Post, a huge amount of investment from the US has targeted Yorkshire.
Lesley Males, Datscha’s head of research, told the Yorkshire Post: “North Americans in particular are targeting the regions outside of London.
“They are looking at student accommodation in particular, as well as the private rental market. US investors are obviously being a bit more cautious and are seeing the potential for better returns in Yorkshire.”
Males also commented that the strong investment seen so far is expected to continue into next year. She added: “There are no signs of the market slowing down. Even with all the negativity that surrounds Brexit, there is still a real appetite to invest into the UK.”