An interesting new survey has indicated that a growing number of British expats are looking to purchase in property back in the UK, with London proving the most popular location for investors.
According to deVere Mortgages, three quarters of home loan enquiries for properties in the UK were from expat purchasers. These were mostly from Russia, the Middle East and the United States of America.
Currency Changes
The organisation, which offers support to British expats alongside foreign nationals who are interested in purchasing property within the UK, has cited changes in currency as a major incentive for buyers
Tom Elliot, international investment strategist at deVere group, suggested that, ‘currency weakness against the dollar is making Britain relatively less expensive than it previously has been and London becomes cheaper than other elite cities for international property portfolio investors.’[1]
Elliot believes that, ‘for this reason, interest has been particularly strong from expats from Russia, the Far East, the Middle East and the U.S.’ He added that, ‘these individuals are taking advantage of the economic recovery, continuing strong demand growth and limited new building due to planning rules.’[2]
Surprise
The sheer volume of enquires has come as somewhat as a surprise, even to the company itself. ‘We knew demand would always be strong from expats because of the distinct investment advantages,’ explained Kevin White, UK head of financial planning at deVere, ‘because expats typically have a higher level of disposable income than those residing full time in the UK.’ [3]
Wilson continued by stating that, ‘these individuals are increasingly aware that they are typically deemed as high risk by UK lenders and will therefore need mortgage advice from industry experts who have established relationships with the relevant lenders.’[4]
With over 80,000 clients globally, deVere has already announced plans to increase the volume of mortgages business substantially during 2015, working with over 200 UK and international lenders.
[1-4] http://www.propertywire.com/news/global-news/uk-expat-property-buyers-2015042810443.html