News & Views

Make Hay Whilst the Sterling is Weak

There is no point sugar coating the fact that potential buyers in the UK seem to be resting on their laurels right now when it comes to property investment.  A combination of Brexit, fear of rising interest rates and general anxiety over economic conditions seems to be putting those buyers off for now. Bucking this trend are overseas investors.  Despite higher stamp duty rates and capital gains tax liabilities, buyers from Asia and the Middle East are snapping up second homes in London, especially those valued at over £1m.

The fall in property prices and the weak pound means it is now costing overseas investors less to buy UK property.  The biggest driver for prime properties in London will no doubt be foreign investors looking to hedge their bets against a favourable currency play.  Investment from China continues to go from strength to strength where gaining access to top educational institutions is a key factor in relocating.  The feeling is that the top end of the London market will continue to go from strength to strength in 2019 with overseas investors ignoring Brexit.  Buyers taking a long-term approach will no doubt be looking to make a savvy investment by purchasing now and this, in part, is preventing doom and gloom from completely overtaking the property market.

For more information please contact our residential team or Asha Ngai.

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