UK Named Hotspot For Overseas Property Investment

The UK has been named a top hotspot for overseas investment in residential property in 2021.
Why is investing in UK property so attractive?
What are investors expecting from the year to come?

For many years, the UK property market has been a prime target for overseas investment, and this shows no sign of changing in 2021. More recently, property investors from Asia, Europe, and the US have taken a particular interest in UK property as a reliable investment opportunity.

In a survey by international law firm DLA Piper, they named the UK a prime global property investment hotspot.

The survey found that investors headquartered in China and the US listed the UK as the best place for investing in residential. Property investors from the UK, Germany, France, Spain, and Italy ranked the UK as the third-best place for property investment. On the whole, investors remain positive going into 2021.

Why is investing in UK property so attractive?

Foreign property investors view the UK market as a safe haven with preferable currency exchange rates and low mortgage rates.

Investors find British property appealing because of high demand and a shortfall in supply, significantly growing rental demand. The strong yields and attractive prices give the UK property investment solid long-term prospects for capital appreciation.

Stamp Duty Holiday

Since the stamp duty holiday came into place, foreign buyers and investors have been snapping up property across the UK well into the new year. Although the additional 2% stamp duty surcharge is set to return for overseas-based investors in April, experts feel it is unlikely to discourage overseas investors.

Value of Sterling

The fall in sterling is just one of the benefits that will keep overseas investors interested after the reintroduction of the stamp duty tax.

Visa Opportunities

Property experts predict a surge in interest from Hong Kong buyers and investors because of a new special visa. The new visa was opened to British National Overseas passport holders in Hong Kong on 31st January. Many Hong Kong residents will likely use this opportunity to emigrate to the UK and invest in property.

What are investors expecting from the year to come?

Although the global COVID-19 pandemic continues to bring uncertainty, investors remain optimistic about UK property investment.

The DLA Piper survey reported more than half of the 500 high-net-worth investors taking part felt optimistic about the European property investment market. Just 11% felt pessimistic about this years’ prospects. Additionally, 33% said they wish to invest in UK property during 2021.

Another recent study by Property Master showed nearly half of buy-to-let investors in the UK are optimistic about the market in 2021. The statistics show that only 10% plan to leave the sector this year and nearly 70% said they do not plan to sell properties.