The UK property market attracts a substantial amount of foreign investment. Why is UK property so in demand?
How is the UK viewed globally?
Although only recently losing its place to Germany as the fastest-growing economy in the western world, the UK has experienced steady growth for 16 consecutive quarters and has outperformed economic forecasts.
Strong education system
Chief Executive of Juwai.com, Charles Pittar notes that international investors are motivated by four main things; “investment, lifestyle, emigration and education.” He notes, “Many are looking for a foothold in the UK, where they hope their children will go on to study.”
The UK offers a strong education system, with an world renowned reputation. 16% of the universities in the Top 25 World University Rankings are in the UK – a notably impressive figure considering its size. The international interest and confidence in the UK education system can be evidenced by the percentage of enrolled international students. According to data recorded between 2015-2016, the international student population sits around 19% in England, 22% in Scotland and 17% in Wales.
Quality of life
The UK was also named the third best country in the world in 2017 in terms of how it is seen globally. In creating the league table, 60 nations were ranked in 24 categories, using data gathered from 16,200 business leaders, informed elites and general citizens.
Demand from Overseas Investors?
London has developed a reputation amongst international investors. Often seen as a “bellwether” location, it is viewed as a promising destination and consistent location.
Research published by the House of Commons Library indicates that within the high-end Prime London market, 32% of buyers are international. In addition, 49% of properties sold for over £1m were bought by foreign nationals. A number that increased post Brexit, with the cheaper Pound.
However, international interest is not exclusively tied to the capital. The “northern powerhouse” proves to be a popular option. Investors can potentially invest the same amount of capital across a wider range of properties. Areas such as Manchester, Liverpool and Birmingham are all rising hot spots for this.
Why is UK property so popular?
Robust housing market
The UK property market boasts an incredible amount of potential to property investors. Between January 2002 and January 2017, house prices in the UK rose by 147.2%. In addition, over the last 20 years, UK property prices have grown by 14.34% p.a. on average.
In comparison, the FTSE All Share index delivered 3.46% p.a. on average over the same time period.
In fact, new research recently published in the Telegraph revealed that house prices in England have grown faster than “almost all other European countries.”