June’s Brexit vote has sparked a surge in overseas buyers investing in London property, a new report has found.
A recent BBC report found that the fall of the pound following the EU referendum has triggered a spending spree in the UK capital’s property market from foreign investors.
And the report suggests that whereas prime areas of London were once more likely to be targeted by overseas investors, changes in stamp duty mean that they are now interested in cheaper properties. This is bad news for first-time UK-based buyers, who are increasingly unwilling, and unable, to in invest.
Responding to the BBC’s findings, Paula Higgins, the CEO of the HomeOwners Alliance, said: “It’s certainly a concern that as a result of Brexit, homebuyers are sitting on their hands while foreign investors buy up more affordable parts of London. The Government needs to do all it can to create a stable, functioning housing market. That means continuing to build more homes, but alongside reassuring people about the Brexit process.”
Separate figures show that financial advisers have reported a 40 per cent increase in enquiries for UK residential and commercial property from overseas buyers keen to make the most of increased purchasing opportunity in the UK.
The weakened sterling post-Brexit, coupled with the Bank of England’s decision to lower the interest rate at the beginning of August, has meant that UK assets are now 10 to 15 per cent cheaper than they were before the Brexit vote for some investors.
Article published 9th September 2016