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Expat investors gain from Brexit property price slowdown
| Published: | 22 Jan at 6 PM |
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Brexit chaos and uncertainty is causing British property investors to sit on the fence, leaving opportunities open for expat investors.
In a number of UK regions including London, property price increases are either slowing or, in some areas, actually reversing, giving good news to overseas buyers in general as well as UK expats. In addition, sterling has fallen by up to 20 per cent since 2016, giving expat buyers an effective price cut. Across Britain, average house prices only increased by 2.7 per cent between October 2017 and October 18, with London’s annual growth rate actually falling during the same period by 1.7 per cent, following a 1.8 per cent drop in the previous 12 months.
The shock 2016 referendum result had an almost immediate effect on British house prices, headed up by a significant slowdown in southern and eastern England. Property prices in several of the two regions’ wealthiest enclaves have now lost 25 per cent of their value over the past 12 months, due almost exclusively to Brexit-led uncertainty. As a result, British property is now at bargain prices compared to three years ago, especially in London and its immediate surroundings.
In addition, many UK home owners are becoming desperate to sell and buy-to-let mortgage interest rates are now at 2.99 per cent, making the UK’s real estate sector a buyers’ market both for overseas investors and British expats. At the same time, it’s perfectly possible that both sterling and UK house prices will continue to fall, should the present Brexit chaos continue and result in a no-deal exit or a hard Brexit, thus giving investors even better deals in the near future.
In a number of UK regions including London, property price increases are either slowing or, in some areas, actually reversing, giving good news to overseas buyers in general as well as UK expats. In addition, sterling has fallen by up to 20 per cent since 2016, giving expat buyers an effective price cut. Across Britain, average house prices only increased by 2.7 per cent between October 2017 and October 18, with London’s annual growth rate actually falling during the same period by 1.7 per cent, following a 1.8 per cent drop in the previous 12 months.
The shock 2016 referendum result had an almost immediate effect on British house prices, headed up by a significant slowdown in southern and eastern England. Property prices in several of the two regions’ wealthiest enclaves have now lost 25 per cent of their value over the past 12 months, due almost exclusively to Brexit-led uncertainty. As a result, British property is now at bargain prices compared to three years ago, especially in London and its immediate surroundings.
In addition, many UK home owners are becoming desperate to sell and buy-to-let mortgage interest rates are now at 2.99 per cent, making the UK’s real estate sector a buyers’ market both for overseas investors and British expats. At the same time, it’s perfectly possible that both sterling and UK house prices will continue to fall, should the present Brexit chaos continue and result in a no-deal exit or a hard Brexit, thus giving investors even better deals in the near future.
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