The ongoing uncertainty over how the UK will leave the EU has seen sterling drop against the dollar and euro and this has enabled foreign investors to acquire UK property more cheaply than before.
With more jerky price swings on the horizon it would appear that there is plenty of room for growth of foreign investment in the UK’s property market, with many investors targeting solid rental returns and good prospects for capital growth.
According to Commercial People, a global free-to-list property portal, there has been a notable rise in demand from international investors for property in the UK.
Based on growth in buying enquries, the PropTech firm has seen strong appetite of late from foreign investors looking to invest in UK property, especially as sterling’s value continues to underperform.
Kimberley Turner, head of property consultancy Bruton Knowles, said: “The weakness of the pound has encouraged more overseas investors to do deals in the capital and has also enhanced tourist trade in London [as well as other key regions across the UK].”
While the commercial sector is receiving a major share of foreign investor attention, there remains a significant allure from the residential sector in attracting overseas property investors in prime areas such as London, Birmingham and Manchester, according to Commercial People.
Christopher May, director of Commercial People, said: “International investors see London as a safe haven for their capital.”
He added: “The weakness of sterling has made buying UK property a lot more attractive, and we are seeing a considerable amount of traffic coming from the EMEA region.
“Our traffic shows the potential for international investors is definitely on the rise.
“In addition to this, we are also in dialogue with most of the big developers in the EMEA region who are now setting up offices in London, as they feel that they can easily sell to their existing customers looking to buy in the UK.”