The pandemic has had many surprising effects. Empathy has increased. Our technological skills also have. So has our keenness to buy a property.
This heightened interest in buying a property in the UK has emerged largely from UK residents amid lockdowns due to the need for more space. But now that Covid rules have relaxed and there’s a sense of normality, the popularity of UK property seems to be growing among international investors.
Our savvy agents of properties for sale in Sittingbourne examine the international buyers market in the UK.
The popularity of foreign ownership of UK property is not new. Recent data from the HM Land Registry shows that the purchase of UK property from international investors has increased by about 180% in 11 years!
Buyers are scattered across 20 countries, with Southeast Asia and the Middle East being the top locations.
Since 2021, new BNO visa rules have triggered a steady increase in UK property investment from Hong Kong. Those with BNO visas have the advantage of buying UK property to live in, to accommodate family members or for buy-to-let purposes.
Many see the UK property market as a refuge for their investments. This has been particularly evident in the last two years, with international investors buying properties with the confidence that prices were rising despite the pandemic!
It is therefore expected that more international property investors will join the scene this year, now that UK property price growth has slowed but remains steady.
Another positive effect of price growth is that international investors of buy-to-let properties take on higher yields. There is also little competition, with a low supply of rental homes on the market compared to the demand from tenants.
You would be right to believe that London is the leading location for international investment in property in the UK.
But international investors also consider properties in greener counties and fast-developing cities. Why? Because of their stronger price growth over the last two years compared to properties in London.
Areas with efficient transport links to the Capital hold much of this demand. For example, properties for sale in Sittingbourne are only an hour from London, with country parks and the beach nearby, which are attracting overseas and local investors alike.
It's a given that international investors found the borrowing process more difficult during lockdowns or faced some barriers to lending when mortgage lenders and many adjacent industries came to a standstill.
As a result, many lenders focus on providing international property buyers with a simpler and more personalised lending journey.
The rise of lending for international investors has already gained momentum with the launch of digital innovations, such as Zoom conferencing for large property exhibitions. Also, WhatsApp property tours and communications, to name but a few.
James Riley of Oriel Finance mentions that thanks to these challenges faced since the pandemic began, there are now options for most international investors of UK property.
The market can continue to evolve technologically to speed up transactions to promote further growth in the international buyers market in the UK.
If you want to expand your foreign footprint as a real estate investor, a specialist UK mortgage lender is an efficient and secure way to gain property ownership.
If you’d like any advice on buying properties for sale in Sittingbourne as an international investor or on selling your UK property, call or email us today - we’ll be happy to help you on your journey!