In the September Q&A, we take a look at the slowdown in international buyers and BTL purchases, the rural rental shortage and what it all means for UK expats!
– Stuart Marshall
MANCHESTER, GRAND MANCHESTER, UK, October 3, 2021 /EINPresswire.com/ – A drop in international buyers.
Q: I am a foreign national who has been looking to buy property in the UK for some time now. However, I hear that foreign nationals buying in the UK are not as common anymore. Is there a good reason for this? I thought the 2% surcharge for overseas buyers might be responsible. So should I be deterred from UK property?
A: “You are right to notice a downward trend in international buyers. Like most things, there isn’t just one reason for this. On the one hand, the pandemic has massively affected international travel and this has dampened the desire to buy in the UK for many foreign nationals who are simply unable to make it here. The 2% stamp duty surcharge for international buyers will also have an impact, especially since it came into effect at a time when the British pound has recovered somewhat, making British ownership more expensive. than before for foreign buyers.
“However, the impact of the London market is a major factor that distorts the image for international buyers. While the number of international buyers has generally declined, London’s depressed property market is creating a false sense that UK property is struggling when it comes to foreign investment. London typically accounts for a large portion of international trade with around half of purchases in major London postcodes made by international buyers. However, this year the number of prime London purchases made by international buyers fell to 27% – the lowest level in a decade. ‘
“These figures for London skew the picture for the rest of the UK. Although returns for UK expats and overseas buyers have been somewhat eroded by some of the factors mentioned above, other parts of the UK outside of London can still pay big dividends. If you are unsure about investing as an international buyer, the best thing to do is speak to an expert broker who can help you make a decision. ‘
A slowdown in rental purchases.
Q: “I have seen homeowners’ purchases in the UK slowing down with the end of the stamp duty holidays. Does this mean that now is not the right time for me to invest? “
A: “In short, no. It was always inevitable that rental purchases would start to decline after the close of the stamp duty holiday, during which homeowners’ purchases made up 15% of all homes bought in the UK. Recent reports from Zoopla suggest that UK properties are renting almost a week faster than they were in 2020 and that rents outside London are on average 790 cfm compared to 752 cfm a year ago. year. The latest research from Knight Frank projects that £ 75bn of investment will be directed to the professionally managed rental private sector (PRS) by 2025. This is an increase from the £ 70bn originally planned. With rental demand increasing at its fastest rate since 2008, it is actually the perfect time to own a property for rent in the UK. ‘
“Another factor that could affect the image is the shortage of inventory available for purchase for homeowners by the minute. For those who fail to find the right property, they may choose to bide their time and wait for the right investment to arise, rather than compromise on another type of property. Despite the shortage of rentals, there are still many great options on the market. Among these options are downtown rental properties, which are currently proving to be incredibly lucrative. The depressed inner city housing market during the pandemic means there are plenty of deals to be made for UK expats and up-to-the-minute foreign investors. And this translates into higher returns as rental demand in the city center increases with the reopening of social places and workplaces.
Rural properties out of reach.
Q: “I tried to buy a rural rental, but the prices over the past year have been outrageous. Should I wait for prices to drop again or are there other options I should consider? “
A: “There is an extremely low stock when it comes to country properties and the search for space due to the pandemic has only increased the pressure on the stock and, consequently, the pressure on the stock. massive increase in the prices of this type of property. However, I don’t think that should deter you from your goal of becoming a UK expat or overseas rental investor. A good option to pursue as an alternative might be a suburban property. While these properties are cheaper, they still tick many of the same boxes that tenants look for when looking for a rural property. These include the proximity to green spaces and the increase in space. In fact, with the reopening of workplaces and the resumption of social life in the city center, a suburban property may even be more desirable than a rural property as it will be able to provide a happy medium between the city. and the countryside. The resurgence of UK vacations means it is worthwhile for expats to consider a UK holiday mortgage as well, as these are now available to first-time buyers and properties can be purchased on the coast, in the country or wherever a customer feels perfect. vacation retreat ”.
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