If you plan on selling your home, it is important to find the right buyer for your home. However, you will likely be happy to find any buyer. As long as someone makes a successful offer on the property, you can continue your property aims with your next move.
Therefore, the more prospective buyers in the area, the better. This is why the presence of overseas buyers isn’t all bad in the UK, and in London in particular.
There is no denying the number of London properties lying empty, owned by overseas investors has challenged the market. However, if you are looking to sell your home, your focus is on selling your home, not on what the buyers’ plans are.
At Hunters Hornchurch, we look at the housing market locally, and we stay in touch with the latest news and views. You can rest assured that we will keep you fully informed as to who is looking for what in the UK market.
There is still interest for UK homes from overseas investors
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
A separate study indicates there is confidence and positivity amongst close to half of the BTL investors in the UK.
The research, carried out by Property Master, found only 10% plan to leave the sector in 2021 and close to 70% have no plans to sell their property.
There are challenges to overcome in the market this year
Any review of overseas interest in the UK market must acknowledge the additional 3% stamp duty charge for overseas property buyers. This comes into effect in April 2021.
Of course, many industry observers believe the poor performance of sterling and low mortgage rates in the UK will nullify some of the concerns overseas buyers will have.
Another factor to consider in this market came into effect on 31st January 2021. A new special visa to British National Overseas passport holders in Hong Kong is likely to see people move to the UK. This will result in further property investment.
If you are keen to stay in touch with the local housing market, we can help. At Hunters Hornchurch, we are on hand to ensure you receive all the guidance you need in the local property market, and we are here to assist you.