Posts with tag: Overseas investors

Weaker pound making buy-to-let attractive to UK expats

Published On: September 7, 2017 at 9:41 am

Tags: Buy-to-Let,EU,Overseas investors,UK expats

The fall in the value of the pound following the decision to leave the European Union over a year ago has in turn made the UK a cheaper location for overseas-based property investors.

As a result, a growing number of UK expats are choosing to invest in Britain’s buy-to-let market.

Falling Pound

During the past 12 months, the pound has fallen by almost 15% against the Euro. This means that buy-to-let investors based abroad now get more for their money when purchasing property in Britain.

Nigel Pascoe, Director of Lending at offshore bank Skipton International, observed: ‘We are delighted to have been able to help so many British expats secure UK properties and achieve their investment aims. Capital growth in UK property has been strong over the past few years and buy-to-let remains a very popular long-term investment for British expats.’[1]

Weaker pound making buy-to-let attractive to UK expats

To the end of May 2017, Skipton International recorded more than double the value of enquiries for expat mortgages, in comparison to the same period last year. This included a rise of 124% from UK expats in the UAE, a 145% increase from those in Switzerland and 175% from Britons in Hong Kong.

Continuing, Mr Pascoe said: ‘Many British expats who had been considering investing in UK property made the most of the devaluation of Sterling to use foreign savings. However, we must attribute the majority of growth to our team and the excellent levels of service they offer all our customers, for mortgages and for offshore savings.’

[1] https://www.landlordtoday.co.uk/breaking-news/2017/9/weakmakes-uks-buy-to-let-market-more-attractive-for-british-expats

Overseas Property Investors Now Competing with First Time Buyers in London

Published On: September 7, 2016 at 10:51 am

Author: Em Morley

Categories: Property News

Tags: Brexit,first time buyers,London,Overseas investors,property investors,property market

Overseas property investors, as well as the country’s own landlords, are now competing with first time buyers for affordable properties in London.

Overseas Property Investors Now Competing with First Time Buyers in London

A recent report from the BBC claims that the fall of the pound following June’s EU referendum has triggered a spending spree from foreign investors in London’s property market.

However, it warns that overseas property investors are no longer just targeting prime central locations.

Due to Stamp Duty hikes for properties worth over £1.5m, property investors are now seeking cheaper properties in the capital, which is putting more pressure on struggling first time buyers.

With the new Prime Minister, Theresa May, insisting that “Brexit means Brexit”, the BBC has investigated what the future holds for London. It also questions whether first time buyers, many of which are currently priced out of the market, will benefit from the country’s decision to leave the EU.

In addition, the Inside Out London programme also looks into whether the capital’s recent spike in race-hate crime is driving immigrants out of the country, and what an independent state of London could look like.

The full show, which was broadcast on BBC One London on Monday 5^th September, is available on the iPlayer here: http://www.bbc.co.uk/iplayer/episode/b07qbfcx/inside-out-london-05092016

The CEO of the HomeOwners Alliance, Paula Higgins, responds to the BBC’s revelations: “It’s certainly a concern that as a result of Brexit, homebuyers are sitting on their hands while foreign investors buy up more affordable parts of London. The Government needs to do all it can to create a stable, functioning housing market. That means continuing to build more homes, but alongside reassuring people about the Brexit process.”

While the media has been “plagued” by negative reports on the effect of Brexit on the property market, recent figures from Halifax suggest that a recent slowdown in house price growth was caused by an ordinary seasonal adjustment, not the Brexit.

Has your property market activity been affected by the vote to leave the EU?

Chinese Investors Remain Hungry for London Property Following Brexit

Published On: August 31, 2016 at 10:53 am

Author: Em Morley

Categories: Property News

Tags: Brexit,Chinese investors,London,London property market,Overseas investors,property investment

Brexit is proving no obstacle to Chinese investors, who remain hungry for a piece of the London property market.

In fact, recent research shows that the drop in sterling’s value has created an excellent opportunity for overseas investors in the UK property market.

Chinese Investors Remain Hungry for London Property Following Brexit

The founder and CEO of trading platform Investorist, Jon Ellis, explains: “The fall in sterling’s value after the Brexit vote led to many investors rushing to pick up property in the UK, which had suddenly become much more affordable. What we’re seeing now is the continuation of that trend, but with purchases by more risk-averse investors. The continuing reduction of the pound’s value has given many investors time to consider the Brexit implications from all angles, and most have decided that the UK is still a strong, viable option.”

The weeks following the Brexit vote have been incredibly busy for the property market, according to new figures.

Affinity Sunny Way, the overseas investment arm of Affinity Global Real Estate, has experienced a 10% rise in Chinese travellers, with Managing Director David Wei believing: “Lots of them come to buy property. A few companies dealing with [property investment] from China in the UK have become really busy and they’ve had to hire more people.”

Firms such as Investorist have also witnessed a significant increase in interest in the weeks following the EU referendum. The rise arrives after what has already been a busy period for Chinese buyers of UK property – Chinese investors accounted for 23% of all new residential property purchases in London over the past 18 months, according to Savills.

But the UK is not alone in experiencing huge Chinese appetite for property. CBRE reports that Chinese investment in the first half of the year totalled $16.1 billion – more than double the amount invested in the same period of 2015. The USA was a firm favourite in terms of total investment, while hotels and offices were the most popular property types.

Manson Zhao, the General Manager of Investorist in China, says: “China’s economic slowdown has had a big impact in terms of pushing investors to look overseas for their property investments. Countries like the US and UK offer the attraction of a stable environment – even despite Brexit – and higher returns than domestic investments. It’s a win-win for Chinese property investors, and the political and economic factors look well positioned to sustain the trend for quite some time.”

Although the news that Chinese investors are flocking into the London property market following Brexit might be good news for those in China, it may not prove too positive for struggling homeowners in the UK.

With a chronic housing crisis already hitting London particularly hard, overseas investment is unlikely to ease pressure on aspiring first time buyers.

What’s more, a recent report from the Residential Landlords Association warns that holiday let websites may be aggravating London’s housing crisis: /holiday-let-websites-adding-londons-housing-crisis/

PCL market to be hardest hit by referendum result

Published On: June 24, 2016 at 11:55 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,interest rates,Overseas investors,prime central London market

The shock news that Britain is to leave the EU is likely to have the largest detrimental effect on the prime property market in London.

With sales activity and property price growth in the sector continually slowing since 2014, experts had already underlined the danger of a Brexit driving further reductions.

Prime falls

Liam Bailey of Knight Frank, believes, ‘there is no doubt that the vote in favour of Brexit will generate a period of renewed uncertainty in the prime London residential market. Some demand, especially from investors, will be delayed and in some cases redirected to other markets although the significance of those trends should not be overstated.’

‘It is not easy to identify an obvious alternative destination for investors despite short term nervousness. On the eve of the vote the pound sat 14% below its mid-2014 peak meaning pricing in the prime market was more attractive for dollar buyers. While a further weakening of the pound could increase inward investment, this impact will be constrained by the fact that around 80% of central London buyers are UK residents,’ he added.[1]

Interest rate cuts?

Bailey went on to say, ‘it seems a reasonable assumption to make that interest rates will be lower for longer, despite the risk of imported inflation from a weaker pound. While the long term benefit of ultra-low interest rates on the housing market may be questionable, in the short term they will act to underpin demand especially for equity rich buyers with access to the best funding rates.’[1]

‘While we are entering a period of renewed uncertainty in the UK and London market, ongoing issues around EU and especially Eurozone stability, which will be highlighted in the run up to French and German elections, are likely to counter this risk and shore-up London’s safe haven appeal,’ he concluded.[1]

PCL market to be hardest hit by referendum result

Risks

Peter Wetherell, chief executive of Wetherell, believes there is now a Pandora’s Box for the London property market. He feels that this will greatly assist foreign investors.

Wetherell suggests, ‘This is a market for risk takers and people able to spot high risk, but potentially lucrative opportunities that have emerged overnight due to the fluxes in the markets. Dollar based Middle East and Asian investors in particular will now look at short term buying opportunities in the central London property market and look at acquiring residential property priced up to £6 million.’[1]

‘Now that UK will not be part of the EU in the future then industry construction costs could rise by up to 15% since currently construction materials imported from and exported to the EU are free of duty and taxes. Many site/construction staff working in London are people who originate from countries across the EU the future of all of this will need to be looked at quickly and decisively,’ Wetherell added.[1]

[1] http://www.propertywire.com/news/europe/brexit-london-property-market-2016062412069.html

West Africans buying in London hotspots

Published On: May 12, 2015 at 4:48 pm

Author: Em Morley

Categories: Property News

Tags: Mayfair,Overseas investors,property in London

A leading London estate agent has suggested that a new wave of overseas investors are looking to purchase property in the capital.

Foreign investment in London from the United States, Russia and the Far East has been common for a number of years. Harrods Estates Mayfair Office however claims that there has been a sharp increase in demand from West African buyers during the last year.

Surge

The estate agents claim that sales to people of West African nationality have risen by 40% in the last 12 months. This signifies an increase of 400% compared to two years ago.[1]

Shirley Humphrey, director at Harrods Estates, said that the majority of wealthy West African investors were looking to spend between £2.5-£6.5 million on two or three bedroom apartments. As is common for international investors, Humphrey said that the most offers were for luxury developments, offering round the clock surveillance and facilities such as a spa.

‘Family is very important to them and they prefer to cluster buy more than one apartment in the same building so that they have somewhere for their children, parents and grandparents to stay,’ Humphrey remarked.[2]

West Africans buying in London hotspots

May-fairs well

Humphrey noted that Mayfair is to undergo changes in the upcoming years, with new developments planned, alongside the restoration of many residential buildings. Factor in that the location has notoriously appealed to British aristocrats, it is little wonder that investors from the Middle East, China, India and Russia have already chosen to live in the area.

‘Mayfair offers a village lifestyle in a fantastic central location,’ said Humphrey. ‘The excellent shopping on Mount Street and Bond Street, fantastic restaurants and five star hotels, contribute to the areas popularity and with Hyde Park and Knightsbridge a short stroll away, many of our clients love the location as both an investment and lifestyle choice,’ she continued.[3]

She also stated that, ‘West African purchasers are drawn to living north of Hyde Park or just off Park Lane on Upper Grosvenor or Mount Street and prefer period buildings with newly refurbished luxury interiors which they can move straight into.’ Although buying property for investment purposes, Humphrey thinks that, ‘the key thing for West Africans is owning a home in London which they can use for a minimum of a few months of the year.’[4]

[1-4] http://www.propertywire.com/news/europe/west-african-buyers-london-2015051210496.html

UK property market tipped for post-election growth

Published On: May 11, 2015 at 11:52 am

Author: Em Morley

Categories: Landlord News

Tags: housing market stability,Overseas investors,property investment

Latest Landbay Rental Index Reveals Best and Worst Areas for Growth in England

After the Conservatives recorded a superb and unexpected majority triumph in last week’s election, experts are predicting a rise in UK house prices.

It is anticipated that investment in property in London will rise sharply with insecurities over the future of the market now dispelled. This is believed to see more overseas buyers taking the decision to purchase homes, without the risk of a mansion tax being introduced.

‘Bun fights’

Edward Heaton of Heaton and Partners property search agency predicts that house prices for prime country properties could see an increase of up to 10% in just a matter of weeks. Heaton said that, ‘there will be bun fights in the next few weeks for the best houses which come to the market as confidence in the top-end of the regional market returns.’ [1]

Mr Heaton continued by saying that, ‘for many operating in the prime property market, there is a palpable sense of relief at the election outcome as there were some genuine concerns about the possible impact of mansion tax tied in with the attack on non-doms proposed by Labour.’[2}

Stability

Michelle van Vuuren, managing director of residential development at Sotheby’s International Reality UK, believes that a Conservative victory will pave the way for much needed stability in the housing market. ‘The removal of the uncertainty that has clouded the last year of the coalition will allow developers to plan confidently for the medium term with a consistent economic policy.’ However, she did go on to state that the country needs the Tories to, ‘ come good on their annual pledge of 200,000 new homes and freeing up brownfield sites for development.’[3]

UK property market tipped for post-election growth

Van Vuuren believes that, ‘increasing the supply of homes is the only way to truly overcome the hurdles that the housing market places for the majority of buyers.’ Continuing, she said that, ‘a cessation of the clamour for a mansion tax will see a number of transactions that have stalled to come back on line as a certitude creeps back into the market.’[4]

Relief

Chief executive of Marsh and Parsons, Peter Rollings, believes that the outcome of the election means that buyers and sellers alike can plan more easily. Rollings said that, ‘the top end market will be breathing a huge sigh of relief that £2 million plus properties won’t be penalised by a mansion tax, a levy that would have stifled activity in the capital and across the South East.’[5]

Mr Rollings suggested that, ‘any such tax could also have had implications on lower rungs of the property ladder, so it is not just wealthier homeowners who should be counting their blessings. The post-election feel good factor could kick in immediately and 2015 may prove to be a reversed version of 2014 in starting slowly and finishing strongly.’[6]

[1-6] http://www.propertywire.com/news/europe/uk-property-market-election-2015050810486.html