International property investors are poised to pile into the UK and take advantage of favourable buying conditions by snapping up a wide range of homes across the country, according to a new report.
Fresh figures from deVere Mortgages, part of deVere Group, which is one of the world’s largest independent financial advisory organisations, reveal that mortgage enquiries from overseas buyers have shot up by 50% since the UK’s decision to leave the EU last month.
The increase in demand from overseas buyers is unsurprising given that there has been a sharp fall in sterling making assets in the UK cheaper for overseas funds and private buyers, while various reports suggest that some vendors are now willing to accept lower offers in order to secure a sale.
“The pound has plummeted since the Brexit vote’s decision was announced. It is down approximately 11.5% against the dollar and 10.5% against the euro. As such, those buying in the UK with their local foreign currency are finding more value than before,” said Mike Coady, managing director of deVere Mortgages, which specialises in UK mortgages for expats and overseas buyers, primarily from the Middle East, Europe and Far East.
He also pointed out that there are also some signs that the rate of underlying house prices continues to cool off in many parts of the country – a trend which began pre-referendum and is clearly attractive for some buyers.
Coady added: “It is our experience that some UK sellers are more nervous since the shock [EU vote] result. With this in mind, some are willing to take lower offers from potential buyers than they were previously, especially overseas buyers who tend not to be part of a chain.”
Coady also attributes the surge in demand primarily to the fact that the ongoing fundamental strengths of British residential property investments remain intact.