Phone Us

UK Property Post-Brexit Said to See Rise in Interest from Foreign Investors

As the majority of the UK voted to leave the European Union in Thursday's EU referendum, causing the value of the Sterling to decline, experts expect a rise in foreign investment as overseas buyers seek to capitalise on cheaper exchange rates.

As the majority of the UK voted to leave the European Union in Thursday's EU referendum, causing the value of the Sterling to decline, experts expect a rise in foreign investment as overseas buyers seek to capitalise on cheaper exchange rates.

Whilst some buyers have adopted a “wait and see” approach as the terms of Britain’s exit from the EU are negotiated, volatility across the markets represents a once-in-a-life-time opportunity for other investors, whom feel greatly benefitted by cheaper exchange rates.


As reported by Nicholas Brooke, chairman of professional property services of the Royal Institution of Chartered Surveyors: "Anyone who's not dealing in sterling would see an opportunity."


The chairman, who also deals with prospective buyers, said that whilst some buyers remain cautious, investors from Hong Kong and China with “substantial” investment capabilities had voiced their interest.


Expert property agency Knight Frank also predicted that some investors will proceed with caution as they assess the full impact of Brexit but believed that a drop in the Sterling also meant greater ‘buying power’ for investors.


According to Nicholas Holt, Knight Frank’s Asia-Pacific specialist, interest is particularly strong from China, Hong Kong and Singapore where investors’ confidence in the UK property market is high as they share a long history of dealing with UK property.


Reflecting Holt’s observations, Chinese property Juwai.com predicted an increase of 30% more consumer enquiries in June than the previous month.


Others in the industry have also reported an increase in investor activity from countries in the Middle East. David Adams, from London-based agency John Taylor, said his Middle Eastern costumers were frustrated that they couldn’t take advantage of the Sterling’s downturn because their local banks were closed for a religious day.


Prior to Thursday’s referendum, Victoria Garret, Head of the UAE Residential unit at Knight Frank, commenting on the impact of the referendum on market sentiment fo buyers from the Gulf Cooperation Council (GCC) said: “We are seeing a number of savvy investors taking advantage of the currency play and uncertainty, to secure very good investments. This window of opportunity may be short lived depending on the outcome of the Brexit”.


With the volatility and uncertainty that have been clouding markets post Thursday’s vote set to continue as the terms of the UK’s exit from the European Union are negotiated, experts in the industry expect foreign investors to continue to show heightened interest in the UK property.

X
Cookies on our website:
This website uses cookies.
I'm OK with this Cookie Settings ?