The property market in the UK is one of the most popular in the world among foreign investors. The country is one of the world’s top economic powers and financial centres, with London at its heart. Housing is under continually high demand, and in recent years this has spread to the country’s further regions. This is particularly prominent in parts of the north and Midlands, which have become hubs for foreign investmentNow, with the ongoing health crisis, the global economy is coming under pressure. In the UK, interest rates are at an all-time low, making mortgage borrowing extremely cheap. Further to this, the pound is low against the dollar, which has been exacerbated by recent events
Outside of London
In the UK, London is just one of many property investment hotspots. In recent years, investors who have diversified into areas such as Manchester, Liverpool, Birmingham and Leeds have achieved very high yields.
Wealth that was once centred in the capital is now moving further afield. A number of major businesses now operate in cities in the north and Midlands, with more set to follow. This means employment prospects and talent pools in these areas are growing.
With cheaper starting prices than London, these areas can offer greater opportunity for growth if you make the right investment choice. For foreign investors in particular, these areas hold excellent prospects right now.
Changes to taxes
In the most recent UK Budget statement, new Chancellor Rishi Sunak announced some big tax changes. The most important one for foreign investors involves stamp duty.
From 1 April 2021, all overseas investors in UK property will be eligible to pay a 2% stamp duty surcharge on residential property investments. That’s assuming we don’t see any major changes as a result of the ongoing effects of coronavirus on the economy.
This means many buyers from abroad will be keen to push on with their investments over the next 12 months. Chinese and Hong Kong investors in particular, because of the favourable currency exchange rates, could be particularly keen to see investments through now.