The UK - An Attractive and Lucrative Property Investment

Western Europe has always been a popular choice for overseas property investors. Whether it be Italy, France or the UK, foreign investors have flocked to invest in our property markets.

The UK has seen the interest from overseas buyers rise year on year, with particular interest focused on the capital. In the last six years alone, foreign buyers have been responsible for over £100bn of property investments in London. Official data has revealed that since 2008, over 27,989 sales have taken place in the capital involving overseas investors. (1)

These statistics come as no surprise, as the UK is renowned for being a stable, highly lucrative property investment opportunity. It has a reliable non-violent government, well-established property development teams and estate agents and no restrictions on the flow of capital into or out of the country. (2)

Stability

The UK is considered a strong property investment country thanks to its political stability. London has proved to be extraordinarily resilient over the years to any political, social or market change, opting to adapt rather than come under criticism.

The society in the UK is respected and valued with a highly educated workforce and both cultural and business diversity. Boasting a long established world leading legal systems, the UK will remain powerful and influential as a political leader for the foreseeable future.(3)

The fact that there are no restrictions on the flow of investment both into the UK and out, means it is a highly attractive investment all round. Some countries are even exempt from tax on their property investments. If you invest in property in another country, you may have to pay tax twice, both in the country where you have invested and in your country of residency, this is called Double Taxation. However, some places such as Hong Kong, France, Ireland and India are exempt and benefit further financially by choosing to invest in the UK property market. (4)

stable housing investments uk north west property

Security

The UK is dubbed a safe haven for property investment. There are much experienced and innovative property development companies who understand the legalities behind the renovation, development and investment process, making the whole process easier for any first time overseas investors.

The UK property market is a tried and tested method of investment, but if you are new to the game, it is worth finding a competent property investment group who can help you find the right tenants, manage the property on your behalf and keep you up to date with the latest property investment news and insight.(5)

This is the same for the estate agents in the UK. Agents understand the need for reliable and responsible tenants to maximise the rental yield for their overseas investors. The Heaton Group has itself got an experienced and well-established lettings agents who help to source and provide high-quality tenants to maximise the rental potential of their client’s investments. (6)

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Financial Gain

The UK is known for being a lucrative property investment opportunity around the world, with rich cash buyers snapping up properties worth well over the £1 million mark year on year.

According to a recent report by Savills, around £10.5bn has already been invested in the UK property market by overseas investors, since the start of 2015. The investment level is expected to hit a record £14bn by the end of the year. (7)

It is not only the capital but also the North of England which is now attracting foreign investment. Councillor George Osborne recently named the North of England as the UK’s Northern Powerhouse, thanks to the investment potential for both commercial and residential properties.

Mr Osborne said: ‘We are building an ever closer relationship with China, it’s a partnership that is set to unleash growth and help regions like Xinjiang where we know investment can make a real difference, as well as unleash new growth back home, in places like our own Northern Powerhouse.’

The North of England offers one of the highest rental yields in the whole of the UK, with far cheaper property on the market and high rental demand from both families and professionals alike. (8)

financial gain property investment uk north west

Spread the Risk

Being able to diversify your property portfolio across the world allows you, as an investor to spread the risk of your investment. If one country suffers economic hardship, the theory is that your other investments should remain stable and so be able to continue to make you money, whilst the others recover financially.

Many Asian investors have revealed that they’re investing in the UK property market to allow them to ensure that they remain wealthy, even if their country suffers financially. This was ever more present in the recent Chinese Economic Crisis.(9) According to a recent report, foreign investors are set to push another wave of money into the London property market to avoid China’s tumultuous stock markets. (10)

Investing in a number of properties in a variety of locations enables you to ensure you will always have a stable and steady income from your investments.

The UK will remain a strong and attractive property investment opportunity for investors from around the world.

uk investing around the world property

The Heaton Group has a well established and tailored investment process for overseas investors, helping to make the investment process as easy as possible. To find out more please feel free to contact info@heatongroup.co.uk or call 01942 251949 

Sources

1. Standard - How foreign buyers have bought £100bn of London property in six years

2. Russell Bedford - Buying property in the UK

3. KPMG - London property eBook

4. The Heaton Group - Hong Kong: A double taxation haven

5. Manage My Property - Benefits of using a property development company

6. The Heaton Group

7. City AM - Overseas real estate investment into UK regions to hit 14bn this year

8. Hubbis - Understanding tax issues between Hong Kong and the UK

9. The Heaton Group - Will the Chinese economic crisis affect the UK property market?

10. Citywire - Chinese market woes could push up London property prices


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