In the current political climate, coupled with recent regulatory and tax changes in the last few years, many UK-based buy-to-let investors are sitting and waiting for a change in the winds.
Conversely, overseas buyers are viewing the present market conditions as an ideal time to acquire UK property, and particularly in London according to James Pendleton Estate Agents. Both James Pendleton and Walton Estates have seen a significant increase in demand from both foreign investors and funds, with some international buyers acquiring dozens of properties in London this summer.
The value of property in the capital has been falling for well over a year as the uncertainty over Brexit continues. However, demand from bulk-buying investors from beyond our shores is reported to be stronger than ever.
This interest seems to be the direct result of a weaker pound and property value slump caused by the Brexit fiasco. Walton Estates, with other leading agents and property fund managers believe that a no deal Brexit would likely spark an even greater feeding frenzy as large-scale buyers look to take advantage of a further drop in the market and strength of the pound. With investors from overseas certain that the market will recover strongly over the following years, giving them huge long-term returns, they’re more than willing to invest heavily.
With UK investors holding off developers have been forced to start offering bulk-buy discounts of up to 25%, when combined with a currency dividend, investors could be looking at up to a 40% saving.
It has been noted that the majority of the demand is for properties with a price less than £800 per Sq. Ft and has been noted that there is little in anything over £1,500 per Sq Ft.
Smart money is now looking at the London market, reading the cycle and deciding this is the time to act.
This kind of investment happens at the bottom of the market, when investors are certain that prices are reaching their low point and that recovery is on the way. Property is a long-term investment for these buyers, and buying in bulk means they can make large savings in discounts, giving them even more back when they come to sell.
With a range of on market and off market opportunities now could be the perfect time to for buy to let and development opportunities. Contact Walton Estates today for more information today.