As the global economy continues to spiral due to the repercussions of the coronavirus pandemic, international investors are seeking new ways to make money at a time of great uncertainty – and one of the ways they are doing so is by investing in the UK property market.

While housing in the UK has been eyed by international investors for quite some time, it had traditionally been concentrated in the capital – specifically, Prime Central London (PCL). However, estate agencies reveal that the property market in the North of England has seen a surge in interest from overseas buyers, particularly those hailing from Hong Kong. 

This does not translate into a decline in demand for PCL property. On the contrary, estate agent Dexters reveals that sales in the area for properties worth over £2 million were 85% higher in mid-June to mid-August, compared to the same period last year. 

The increase reflects a property market which is deemed as a safe and secure asset, especially during these times of turmoil. Dexters further revealed that most of the transactions were done by buyers from Hong Kong, Singapore, UAE, U.S., Italy and India. 

So why are foreign investors growing increasingly interested in UK property? One of the reasons is the Stamp Duty Land Tax (SDLT) holiday on the first £500,000 on all property sales across England and Norther Ireland, implemented earlier this year. 

The tax duty holiday has already had a significant positive impact on Britain’s property market, with the first national House Price Index published after the introduction of the SDLT holiday showing an annual price growth of 1.5%. 

Another reason is the SDLT overseas-buyer 2% surcharge, which is due to be rolled out as of April next year. This allows room for further savings if foreign buyers act now and purchase a property.

Last but not least, the UK is home to financial and economic stability which may be lacking in their local economies. Drawing attention to London once again, the capital is recognized as a prominent financial space and cosmopolitan hub, guaranteeing buyers room for further lucrative opportunities all the while enjoying the benefits of a luxurious life style provided by a capital city.

Despite the coronavirus looming, foreign demand for UK property is expected to increase steadily, as overseas buyers grow increasingly aware of the investment opportunities available across Britain.