Number of overseas landlords hits five-year high
- 21st April 2021
- Buy-To-Let Property News
Overseas BTL investors took advantage of weaker pound to invest in UK market
The number of overseas landlords has reached a five-year high. The number of foreign investors in UK property has increased by 19% over five years to 184,000, largely in response to a weak pound sterling and confidence in the long-term strength of the London property market.
Despite fears that Brexit would negatively impact the UK housing market, foreign investors saw the fall in the value of the pound sterling as an opportunity to snap up UK property at lower relative cost. Long-term performance in the UK property market is also a factor. The average house price in the UK has risen by more than £100,000 from January 2005 to December 2020, according to the ONS, making residential property an attractive asset to invest in, given the uncertain times.
Property has typically recovered quicker than most asset classes in a recession and a property shortage in the UK has kept rental yields strong. As such, UK property will likely remain an attractive investment for some time to come.
With increasing concerns about the future of global stock and bond markets, there are few reliable alternatives to store wealth in a low-interest environment. Low interest rates also provide buyers with the chance to lock in low mortgage rates if they buy now.
In recent years the UK property market has been a haven for global High Net Worth’s looking for a safe investment. As part of that long-term trend, the number of Hong Kong buyers of UK property is expected to increase further following the launch of new visas for Hong Kong British National Overseas passport holders.
Stephen Ludlow, Chairman at ludlowthompson says: “Even with the challenges facing the economy, UK residential property is still viewed as a strong investment prospect.”
“Overseas landlords have made the most of the temporary dip in Sterling to add to their portfolios. Despite the new Stamp Duty surcharge for overseas buyers, we would expect to see this trend continue.”
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Even with the challenges facing the economy, UK residential property is still viewed as a strong investment prospect.
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