The current volatility of the UK’s economy sparked by the country’s decision to leave the European Union last month could provide profitable opportunities to foreign investors, writes Poole-based Richard Carr.
According to a report published by Arcadis, market conditions in the UK are ripe for opportunistic foreign investors by continuing to invest and store their wealth in prime property in London.
With property values stagnating and the sterling falling relative to the euro and the US dollar as a result of Brexit, latest reports suggest that buyers from Europe, Asia and the Middle East and ready to secure bargains in the London prime housing market.
Further falls are forecasted for the sterling before the year is out and some Banks don’t see it recovering until next year. Property agents are also suggesting that the recovery of prime London house prices might take a further year into 2018 meaning that those investing £2m into property may see their investments rise by as much as £250,000 in value.
If the predictions are correct and the country sees a further influx of foreign investors it will prove a timely boost for the UK construction sector in the long term; especially if increased competitiveness is matched by government funding bringing confidence back into the new build sector.
And according to Benoit Properties International there has already been a huge surge in interest from overseas buyers following the plunge in value of sterling; buyers could make a saving of around 12%.
Matthew Lavin of Benoit Properties International told propertywire.com: “there has been a surge in interest in buy to let property from investors in the Middle East, Hong Kong and other countries with currencies pegged to the dollar.”
Mark Cleverly, head of commercial development Arcadis, echoed Lavin’s comments: “For a market that, in some areas, has been stuttering for some time due to ongoing stamp duty hikes taking the steam out of buyer demand, the buying opportunity presented by recent events could be a big plus. More buyers means a more buoyant market which can only be good news for the industry.”