The current volatility in the UK housing market is leading to more British investment in the US, an expert claims.
Alistair Brown, from Alistair Brown International Real Estate, says the current domestic challenges buy-to-let investors face will see growing interest in the American market right into 2024.
He says: “There’s no doubt that the current nature of the UK housing market is driving interest from British investors in property state-side.
“Fluctuating house prices, a shortage in rental property, and a continued slowdown in housebuilding doesn’t create a good environment for investors. Neither does Government legislation which makes life more difficult for landlords to buy and then rent out properties.
“This year there has been a sharp rise in the number of people looking to America, and Florida especially, for buy-to-let investments.
“Many are attracted by the idea of a relocation, and a change in lifestyle as well as securing a holiday property which can double up as a revenue generator.
“The biggest advantages state-side right now for buyers is simplicity. It’s not a difficult process, and there is a good value currently which isn’t the case in the UK.
“For renters, supply is plentiful in many markets, plus there has been a real growth in product design and development. This means people can rent homes which come with a high standard of amenities.
“I can only see this demand growing over the next 12 months. Florida will continue to see a high level of investment from international buyers who are looking to relocate in search of a better climate, good employment opportunities and lower taxation.”
Brown says there are four main pieces of advice he’d offer anyone looking to invest in the US.
“Start by properly understanding how you want to use a property and why. Be careful with the destination you go for, especially if you are going to depend on rental income.
Select a property management company carefully if you are using one.
“And make sure you get a reliable and trustworthy licensed real estate agent.”
Commenting on how he sees the domestic property market faring over the next 12 months he added: “After a difficult few months, it’s now likely that UK residential home borrowers will continue to see improvement in terms of rate and availability of mortgage products over the next year. On the flip side, it will be harder for buy to let investors, I think.
“Some mortgage providers are now lowering rates on some products. By lowering rates, it allows those who are on fixed-term loans to refinance at better rates. It also allows many homeowners who are sitting in homes they would like to move from, to now buy that next home they wish, but at better rates.
“While the Bank of England's hold on the last review should be welcomed, we need another stabilising announcement to further support the market.”