There has been a notable increase in the number of opportunistic overseas investors taking advantage of effective discounts caused by sterling’s nosedive following the Brexit vote by acquiring property in London.
A declining exchange rate has meant London is becoming a more affordable global property hotspot – particularly for those paying in dollars and euros.
Historically, many overseas buyers have targeted London’s wealthiest areas, but a new BBC report suggests that more overseas investors are now targeting cheaper areas in the capital that offer better value for money homes and higher rental yields.
Changes in stamp duty mean that they are now interested in cheaper properties - pitting them head-to-head against cautious first-time buyers, according to an Inside Out report which was broadcast on BBC One London yesterday and is still available to view over the next 30 days on BBC iPlayer.
The BBC report is supported by recent lending figures which show that the volume of mortgage enquiries from overseas investors is rising, while many London-based estate agents have also reported a sharp increase in demand from international investors.
“The pound has plummeted since the Brexit vote’s decision was announced,” 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.
“As such, those buying in the UK with their local foreign currency are finding more value than before,” he added.