Overseas Investors Should Invest In The UK Property Market Right Now!
The last few weeks has seen unprecedented levels of change in the UK – Royally, politically, and economically. As a result, the value of the pound has fallen significantly against the dollar to its lowest levels in recent history.
Following a mini-budget announcement by Chancellor Kwasi Kwarteng which promised significant tax cuts and record borrowing, the sterling fell to a record low of $1.03
Though the impact will be felt across the UK, the property market remains stable, thanks in part to an influx of overseas investors seeking to take advantage of a market that is still benefitting from strong rental yields.
Why does a weak sterling benefit overseas property investors?
With the pound at its lowest position against the dollar, overseas investors can expand their budget, getting more for their dollar on the UK property market. This provides greater choice for overseas investors when buying into UK property as they can now choose to secure larger properties or city centre apartments in investment hotspots such as Manchester or Liverpool.
Seen as a window of opportunity, overseas investors from the Middle East, China and the US are flocking to the UK property market which is currently deemed highly attractive. While the UK government are hoping that the pound will go back to an upward trajectory, the time is now for international investors to make that step into finding buy-to-let properties in the UK.
Where should overseas property investors look to invest?
While London property investments are often considered first due to its global familiarity, the reality is that even with expanded budgets, the average overseas investor will struggle to secure a sizable property in London that’s going to deliver a return on investment.
Therefore, it’s important for overseas investors to focus their attention on the cities where they are going to be able to get into the UK property market, below market value and make a genuine, long-term return on their investment. This is how domestic investors are making the biggest gains out of the property investment market.
Heading north, Manchester and Liverpool are two key cities where overseas property investors can build their portfolio. Currently, the strength of the dollar means that US property investors in particular are able to make their money go further in these cities. Both Manchester and Liverpool often post rental yields in excess of 10% and feature at the very top of UK cities with the best house price growth.
For more advice on property investment opportunities, please visit the news section of our website, or call one of our senior investment consultants on 0203 819 7366