Overseas Buyers target Northern Powerhouse

Following an extended period of uncertainty in the property market in recent years, caused by Brexit and the COVID-19 pandemic, 2021’s Indian summer, which saw house prices in the UK rise by 10.8 per cent, recent political turmoil sparked by the ousting of Boris Johnson and Liz Truss’s Mini Budget has led to rising inflation, spiralling interest rates and a plunge in the value of the Pound.

Whilst this is causing issues for domestic purchasers it is an opportunity not lost on discerning international investors looking to take advantage of a strong Dollar.

Since the Mini Budget caused a sharp drop in the value of the Pound against the Dollar, leading International Property Consultants LH1 Global has received a significant influx of enquiries from overseas buyers within its network, with a focus on developments in key UK cities, such as Manchester, Leeds and Bradford.

Rayna Hunter, CEO of LH1 Global, commented: “Enquiries and sales to overseas buyers is constant throughout the year, with Asia, more specifically Hong Kong ramping up in the last few months, but the recent political turmoil has seen a noticeable rise in interest, with many looking to strike whilst the iron’s hot.

“Interestingly, we have seen buyers return to the market from South Africa, Qatar, Dubai and USA in large numbers, after a period of inactivity from these regions in recent years.”

LH1 Global developments in Manchester, Bradford and Leeds have registered the most enquiries, as international investors look for value in key growth areas of the UK to further safeguard an investment made during a period of political uncertainty in the UK.

Rayna added: “The most popular apartment types with overseas buyers looking to capitalise on the weak pound are those with lower capital values offering higher yields in city centre developments. The most popular units range from one-bedroom apartments typically priced from £120,000 to £250,000, as well as smaller two-bedroom homes ranging from £250,000 to £375,000.

“The larger units offer more of a discount with the currency exchange, but command a higher capital value, which compresses the future yield potential. This trend certainly isn’t a gold rush, decisions are being made with long-term planning, but the immediate savings are speeding up the decision-making process.”

A further factor driving international interest in UK property is a lack of reliance from overseas buyers on the UK mortgage market, meaning they are largely unaffected by rising interest rates, which allows them to be more agile than domestic purchasers.

Rayna said: “The majority of the enquiries we have received are from those that have been looking to make the move for a while, but the current situation presents an opportunity to reduce capital expenditure, whilst they are also benefitting from a slight drop off in the domestic market that has reduced competition.”

By Mark Adair – Correspondent, Bdaily

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