New research conducted on behalf of the London Mayor showcases that foreign investment in homes in the UK remains very popular. The study is one of the largest into international investment yet and offers an insight into buying trends.
Between 2014 and 2016 3,600 of the 28,000 newly built homes were purchased by overseas buyers. Of this number around half were properties priced between £200,000 and £500,000, i.e. homes typically aimed at first time buyers.
The most popular areas for purchases were the City of Westminster (11% of all properties sold to overseas buyers), Tower Hamlets (9.6%) and Greenwich (9%). Not surprisingly the latter two are home to the most new developments so have the highest concentration of newly built homes.
When looking at the location of overseas investors we see how popular London homes are with South East Asian buyers. A huge 61% of all of the purchases were from people in just four countries; Hong Kong (28%), Singapore (20.1%), Malaysia (7.5%), and China (5.4%).
The figures show that overseas property investment in Tower Hamlets remains very strong. The Baltimore Wharf project effectively shows this. A huge 87% of the 2,999 apartments were sold to foreign investors when they became available.
While responses to the figures have triggered calls for councils to give first choice to British buyers, the research shows that many projects would not get started without overseas investment. In an analysis of a sample of 8,000 Land Registry records it was found that almost every project could not have begun without foreign investors.
At Finefair we are committed to helping all kinds of buyers to find the perfect opportunities for property investment in Tower Hamlets. Whether they are UK based or overseas, and regardless of their goals with the property, we can offer the best level of support. Please get in touch with us if you have any questions about locations, types of property, or services such as property management.