London Property Looks A Bargain For Overseas Investors

24th February 2021 posted in Sellers Buyers

Property prices in London have always looked expensive compared to the rest of the country, but in 2021, it looks as though property in London will represent tremendous value for money for property buyers.

It looks as though overseas buyers are set to benefit from the COVID-19 pandemic and Brexit. It looks as though investors from South Africa, Hong Kong and the Middle East will snap up property in the capital.

London property is always in demand

Dale Anderson, managing director, Fabrik Invest, said: “The UK remains a promising and active market for fully managed buy-to-let properties. The country has a fundamental lack of supply and that’s unlikely to change; we simply can’t build homes fast enough. For overseas investors, Brexit actually presents potential for savings, as currency exchange rates fluctuate. Add to that the fact that Covid is bringing about opportunities such as discounted deals and suddenly 2021 is shaping up to be a huge year for the buy-to-let sector.”

One key factor that is likely to grab the attention of many overseas investors is the interest rate of 0.1% for foreign buyers. This is a historic low, and is another reason why Dale Anderson believes there is an opportunity for people to snap up property in London from abroad.

Dale continued by saying; “With borrowing rates at a record low, now is an excellent time to invest in property. The government is printing another £150 billion due to the pandemic – a move that will catch up with it eventually. It carries with it the potential for the currency to devalue and inflation to rise, meaning that tangible assets such as bricks and mortar carry an even more reassuring degree of safety than usual.”

There are many experts predicting busy times in London

He is not alone in thinking along these lines, and a major organisation has recently highlighted the UK, and London, as being a fantastic place for overseas investors and property buyers.

DLA Piper named the UK as the “top global property investment hotspot”. The international law firm spoke with 500 asset managers and high-net-worth investors, and 33% said they plan to invest in the UK in 2021.

Property investors based in the US and China classed the UK as the leading location for residential property investment.

Investors in Italy, Spain, France and Germany placed the UK as third-best place for property investment. Property investors in the UK also said the UK came third!

Olaf Schmidt from DLA Piper comments: “The UK remains an attractive market for investment also post-Brexit which should provide confirmation and reassurance that the UK is a vital hub for activity and growth.”

The DLA Piper survey into the topic found that more than 50% of investors felt optimistic regarding the property investment market in Europe, while only 11% held negative opinions.

The most commonly cited reasons for the positivity amongst overseas buyers for UK property include:

  • Attractive property prices
  • Strong rental yields
  • High demand for property
  • A shortfall in the supply of property

If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters Stoke Newington today for all your housing and letting needs.