China’s flagging economy coupled with the UK’s attractive investment opportunities is enticing high net-worth Chinese investors into spending big in the UK property market.
Paul Welch, founder and chief executive of largemortgageloans.com told ibtimes.co.uk: “China and Chinese investors coming to the UK is the next big thing. The British government has been wooing big business and high net worth individuals in the country in a big way. If you also take into account China’s flagging economy and a potentially unstable political environment, London is seen as a safe haven for foreign money. It’s an escape and access to a European passport.”
With the election causing instability in the market with Labour’s Mansion Tax policy putting investors off, there is a pent up demand for £1m-plus property now that the Conservatives are back in charge.
In the past decade, Russian and Middle Eastern investors have dominated the ‘super prime’ market in the south with one in five properties – in some areas – being sold to foreign buyers.
Welch’s firm largemortageloans.com saw a 1,150% rise in website visitors from China between February and March earlier this year – a trend which Welch believes will continue. He also explained that an increase in foreign investor would boost housing prices over the next five years.
He added: “Because of the Conservative victory, people will be able to buy and invest with confidence. We will see another five years of house price growth, aided by the removal of the threat of a mansion tax, pension reforms and non-dom rules staying the same.”
Richard Carr believes that any overseas investment is good news for the UK and any person with a modicum of intelligence would also agree – long may it continue. Ironically this is exactly the thing that Ed Miliband was trying to put a stop to!