CONTACT OUR TEAM TODAY 01244 310 050

Search
Close this search box.

UK Top Choice for Foreign Investors Despite Brexit

European investors returning to UK property market for first time since brexit.

New figures from Hamptons International published by The Times show property investment in the UK is picking up the pace from overseas investors for the first time since the Brexit vote.

The proportion of London properties sold to buyers from the EU rose to 13% in the first half of 2018, up by 3% from this time last year.

The research focusses on London which was the hardest hit place in the aftermath of the Brexit vote. In the second quarter of 2016, buyers from the EU made up 28% of property transactions in London, falling to 8% by the first quarter in 2017.

The uncertainty surrounding Brexit and the effect it could have on EU workers, as well high stamp duty rates and additional taxes for people with second homes were blamed for the fall.  

However, decreasing property prices and the drop in the pound’s value have attracted overseas buyers back to London. A home which cost £1 million in 2016 would now stand at £885,450 so it is an excellent time for investors. Indeed, the Office for National Statistics showed that UK is still a top choice for foreign investors with overall investment up by 4% at the end of last year.

Whilst London suffered after Brexit, other parts of the UK have continued to enjoy strong levels of interest and activity particularly in the North West, which has the potential to generate strong rental yields and capital growth. The average yield in Manchester is 7% and the average yield in Liverpool is a huge 8.2%, compared to 4.3% in London.

Although the prospect of a no-deal Brexit is still looming, only time will tell how the UK property market will be affected in the coming years.

New figures from Hamptons International published by The Times show property investment in the UK is picking up pace from overseas investors for the first time since the Brexit vote.

The proportion of London properties sold to buyers from the EU rose to 13% in the first half of 2018, up by 3% from this time last year.

The research focusses on London which was the hardest hit place in the aftermath of the Brexit vote. In the second quarter of 2016, buyers from the EU made up 28% of property transactions in London, falling to 8% by the first quarter in 2017.

The uncertainty surrounding Brexit and the effect it could have on EU workers, as well high stamp duty rates and additional taxes for people with second homes were blamed for the fall.  

However, decreasing property prices and the drop in the pound’s value have attracted overseas buyers back to London. A home which cost £1 million in 2016 would now stand at £885,450 so it is an excellent time for investors. Indeed, the Office for National Statistics showed that UK is still a top choice for foreign investors with overall investment up by 4% at the end of last year.

Whilst London suffered after Brexit, other parts of the UK have continued to enjoy strong levels of interest and activity particularly in the North West, which has the potential to generate strong rental yields and capital growth. The average yield in Manchester is 7% and the average yield in Liverpool is a huge 8.2%, compared to 4.3% in London.

Although the prospect of a no-deal Brexit is still looming, only time will tell how the UK property market will be affected in the coming years.

Related Articles

The transformation of Centurion House, a former commercial building on Northgate Street in Chester, is approaching completion, creating 28 luxury apartments under a unique and...
Blueoak Estates has been granted planning approval for the construction of 32 luxury apartments on the site of the former fire station in the heart...
Grade II Listed Christleton Hall in Chester is set to enjoy the next phase in its evolution, through an epic transformation into 14 luxury apartments....
Blueoak Estates has begun work on its most ambitious project to date, transforming a large 1970’s commercial building into 110 luxury residential apartments....
Have a question about

your new home?