Foreign investors won’t be put off from buying UK property despite the introduction of the 2% stamp duty surcharge, estate agent ludlowthompson has predicted.
There are currently 184,000 overseas landlords who own UK property, a 19% increase over five years.
Rather than putting people off, Brexit has provided an incentive for some foreign investors to buy, because the value of the pound dropped against other currencies after the surprise vote to leave EU in 2016.
Stephen Ludlow, chairman at ludlowthompson, said: “Investments by overseas landlords into UK buy-to-let properties has ensured that there has been a steady stream of capital into that sector, which has kept the quality of rental stock far higher than would have been the case with these investors.”
Given the troubles occurring in Hong Kong, with the Chinese government cracking down on the freedoms previously enjoyed by the former British colony, there’s increased interest in the UK property market from Hong Kong nationals.
This is only set to rise, following the launch of the new visa for Hong Kong British National Overseas passport holders.
Some overseas landlords are also buying up property for their children studying in the UK, as the quality of the UK’s universities and schools remain a pull factor.