Singapore nationals help to drive UK property market activity

New research by Benham and Reeves, highlights that a supporting cast from Singapore is helping to drive UK market activity.

The bonus of the BNO visa scheme has resulted in a high level of Hong Kong homebuyers purchasing in London. They are the most prevalent within the current market, with some 23,524 homes registered to Hong Kong nationals. That is 9.5% of all internationally registered homes. 

However, Singapore nationals are also helping to drive the market. The lettings and estate agents have established that a property portfolio worth £5.8 billion has been snapped up by Singaporean nationals. 

The research was conducted by analysing the latest data on the number of homes owned by foreign homeowners.

UK homes internationally owned

Jersey nationals are in second place with 18,493 titles registered with HMRC. 7.4% of internationally owned properties across the nation belong to Singapore nationals, earning them third place. 

In contrast to Hong Kong buyers, Singapore nationals are not being drawn by the BNO visa scheme. Instead, the investment opportunities available and the recent weakening of the pound are drawing interest. 

Hounslow has the largest proportion of Singaporean buyers. In total £1.658 billion worth of property in the borough is owned by Singapore nationals. A further £651.2 million worth of property is owned in Westminster and £543 million in Kensington and Chelsea.

Director of Benham and Reeves, Marc von Grundherr, commented: “Despite the fact that the average London house price has increased by a reasonably impressive 8.3% on an annual basis, the capital continues to lag behind the wider UK market where house price growth has hit 13.6% over the last year.”

“This slow but steady trend has pretty much remained unchanged since the pandemic and many foreign buyers, in particular, have spotted an opportunity to purchase within the London market while the rate of house price appreciation has been more measured.” 

“At the same time, a weakening pound has also presented many foreign nationals with the potential for an even greater discount, with both Hong Kong and Singapore nationals enjoying respective discounts of 16% and 11% on the average London home in 2022.”

“Unlike Hong Kong buyers who have also been tempted to the UK by the additional carrot of the BNO visa scheme, Singapore nationals have been purchasing very much based on current market metrics and the strength of the market from an investment standpoint.”

“So while it may be Hong Kong nationals who continue to drive foreign buyer activity to the greatest extent, buyers from Singapore have provided a strong supporting role and will continue to do so as the London market heads towards a return to full health.”