Overseas property investors to take advantage of UK currency drop

 

The UK housing market is often viewed as a safe haven for foreign investors. The current climate could attract more overseas investment than ever to the country.

The property market in the UK is one of the most popular in the world among foreign investors. The country is one of the world’s top economic powers and financial centres, with London at its heart. Housing is under continually high demand, and in recent years this has spread to the country’s further regions. This is particularly prominent in parts of the north and Midlands, which have become hubs for foreign investment.

Now, with the ongoing health crisis, the global economy is coming under pressure. In the UK, interest rates are at an all-time low, making mortgage borrowing extremely cheap. Further to this, the pound is low against the dollar, which has been exacerbated by recent events.

For Chinese and Hong Kong investors in particular, the conditions are attractive on many levels for property investment in the UK.

What’s more, the Hong Kong dollar is performing relatively well amid the turmoil. This means investors can get even more value for money when investing in UK property.

“In almost every market where Hong Kong buyers are significantly active, they can buy property for much cheaper now than just a couple of weeks ago,” said Georg Chmiel, executive chairman of Juwai IQI, an international property portal. “The economic fallout is pushing other currencies down as investors fled to the safety of the US dollar.”

Future tax changes

In the most recent UK Budget statement, new Chancellor Rishi Sunak announced some big tax changes. The most important one for foreign investors involves stamp duty.

From 1 April 2021, all overseas investors in UK property will be eligible to pay a 2% stamp duty surcharge on residential property investments. That’s assuming we don’t see any major changes as a result of the ongoing effects of coronavirus on the economy.

This means many buyers from abroad will be keen to push on with their investments over the next 12 months. Chinese and Hong Kong investors in particular, because of the favourable currency exchange rates, could be particularly keen to see investments through now.

Jonathan Benarr, director of APAC at global property portal Quintessentially Estates, said: “We have seen an over 300% increase in client requests for buy-side support since the coronavirus outbreak. The main cities of interest are Sydney, London and Lisbon.”

Opportunities away from London

In the UK, London is just one of many property investment hotspots. In recent years, investors who have diversified into areas such as Manchester, Liverpool, Birmingham and Leeds have achieved very high yields.

Wealth that was once centred in the capital is now moving further afield. A number of major businesses now operate in cities in the north and Midlands, with more set to follow. This means employment prospects and talent pools in these areas are growing.

With cheaper starting prices than London, these areas can offer greater opportunity for growth if you make the right investment choice. For foreign investors in particular, these areas hold excellent prospects right now.

To find out more about UK property investment opportunities, sign up as a member for free. You can browse some of our current projects here.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Foreign investors China Hong Kong

Overseas property investors to take advantage of UK currency drop

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.