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UK property investment news and trends

Property investment in the UK has long been a popular option for those from overseas with money to spend. Whether from the Far East, Russia, Europe or North America, investors from all over the world have tended to buy UK property for many years.

And a new study from Investec shows that even at a time when Brexit and elections are causing some severe uncertainty across the UK, people from overseas are still buy UK property.

It said that in the past 12 months, there has been no let-up in the number of people looking to come to the UK from other countries to buy property stock. Watch a short video about the UK property investment market since Brexit…

So, what is it about the UK property investment market that keeps people interested in investing?

The property experts at Experience Invest look at a few of the most important reasons for investment in UK property and why it has stood the test of time in the eyes of foreign investors.

5 reasons why overseas investors continue to buy UK property since Brexit

A bubble that just won’t burst
Overseas investors reap the benefit of rising values
The appeal of rising rental returns
An ever-evolving market that adapts quickly to change
Booming regions provide better alternatives than London


A bubble that just won’t burst

A property bubble that just won’t burst

In the last few years, property markets across the globe have teetered on the edge at various times, and some have fallen off the cliff, with prices plummeting. For example, property bubbles in both Australia and the US burst in the last few years, while buyers in Dubai saw the price of their stock drop by as much as 60 per cent when the financial crisis struck a few years ago.

This sort of risk can be one of the main reasons people will turn their back on property or worry about investing in the asset. But it’s also one of the main reasons the UK has remained a popular destination for overseas buyers. While other nations have seen their markets stumble, and at times fall, the UK has retained its safe-haven status throughout.

Even after the financial crisis of 2007, property took a dip, but it held fast without bottoming out, and took only a few years to reach values in excess of the pre-recession peak. This ability to remain resilient is what keeps people coming back for more.

Overseas investors reap the benefit of rising values

Overseas investors reap the benefit of rising values

Speaking of price gains, one of the most prominent reasons people will continue to invest in the property market in the UK is that it always seems to give them long-term gains to enjoy.

Over the last few decades, despite various problems being thrown at the market, prices have continued to rise, and those who invested wisely a few years ago are now reaping the benefits. This ability to make long-term gains for investors without high risks seen elsewhere in the world is one of the main reasons people keep investing in the UK from overseas.

An example of these gains was highlighted by research by True Potential, which showed that in the 30 years to the end of 2015, anyone who invested in property in the UK would have made returns of up to 1,433 per cent (or 9.9 per cent per year) on their initial spend.


The appeal of rising rental returns

The appeal of rising rental returns

Overseas investors want to see progress in their assets after they’ve spent big, and this is something that the property market in the UK has been able to provide them now for some time, particularly when it comes to the rental sector.

Those who buy UK property to let over the past six years-plus have seen the value of their returns increase time and again, and it’s that constant rise that means foreign buyers keep coming to the UK time and again.

Even in the past 12 months, when the market has been hit by political uncertainty and a double dose of taxation changes, rental prices have continued to show progress for landlords.

According to the most recent findings published by HomeLet, in the year to the end of Q1 2017, the average rental price climbed at a pace of 0.4 per cent.

Although this is not the double-digit growth we’ve seen in the past, it shows that the perpetual rise in returns is something that keeps investors coming back for more.

An ever-evolving market that adapts quickly to change

An evolving market that adapts quickly to change

Another major benefit of the property market in recent years for investors has been its ability to adapt to that which is new in property. An example of this has been the student property sector. Over the last half decade, there has been a sharp rise in the number of people, both from the UK and overseas, who have been studying at university.

This climb in student numbers meant there was a rise in demand for private accommodation, with universities themselves increasingly unable to provide enough rooms for the rising student numbers.
This created an opportunity for the private investment sector, and it’s one that the market has adapted to in a big way. Over the past few years, more than £11 billion has been invested in a market that continues to provide overseas investors with fantastic returns and a steady income, all because of the market’s ability to constantly adapt to new demand.

Booming regions provide better alternatives than London

Booming regions provide better alternatives than London

The property industry, as mentioned above, is never one to rest on its laurels, but that applies to more than just different kinds of stock. As the market has changed, so have the opportunities geographically for foreign investors, allowing them to become early adopters of new locales that offer them fantastic returns on their spend.

For example, when cities in the north of England like Leeds, Liverpool and Manchester started to thrive and become centres for regeneration in recent years, the property industry was hot on the heels of change.

As more businesses moved to the north and away from London, property investors were able to get on board with new developments in purpose built rental accommodation that made the most of new demand in areas that had largely been untapped before, allowing them to make high yields for lower initial investments.

UK property investment has been somewhat up and down in certain sectors across the country, but these 5 reasons demonstrate why, since Brexit, foreign nationals have not turned their back on and have continued to buy UK property.

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