Overseas investors cash in on the UK property market?

By

26/04/2017.

With house prices in Australia reaching unachievable highs, the British pound and UK property market provide an enormous opportunity for Australian property investors.

Lower entry points, high rental demand, strong yields and a plummeting pound make the UK an overseas property investor’s paradise.


Since Britain’s EU referendum, the volume of property sales to investors from the Middle East, Asia and the US have increased 15%, 10% and 3% respectively. The pound has plummeted to its lowest value against the US dollar in 31 years, attracting global interest to the market.

The average Sydney house price shot from $533,000 in 2011 to the current $970,000, increasing 92.4% since 2009, according to the Financial Times. Whilst Sydney leads the charge as is not representative of the nation as a whole, four of the eight Australian capital cities have also appreciated by at least 10% year-on-year.

This has created an entry point that is unreachable for the regular investor, especially considering demand levels far outweighing available supply. Equally, those who can afford to invest are gambling on properties maintaining their value, let alone long-term growth.

The British housing market has remained resilient in turbulent times with high demand maintaining growth nationwide, despite London’s comparatively poor performance.

With domestic investment remaining modest at best, a substantial proportion of the growth is attributed to overseas investors, capitalising on the weakness of the pound and yields that are hard to come by in other property hotspots.

This Is Money’s recent report identifies an average 7% yield across the north of the UK and 6.4% in the North West, which has a particularly high attraction to overseas investors and is home to Manchester - which boasts an 8.8% average for year-on-year capital appreciation.

With the Australian dollar starting to tumble and losing ground on a number of other currencies, Britain must surely be host to one of the most attractive property markets worldwide for Australian buyers.

 


Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
 

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : rooty hill , campsie , mt gravatt , emerald , nightcliff

go back

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here