{"id":13885,"date":"2022-02-08T04:48:04","date_gmt":"2022-02-07T20:48:04","guid":{"rendered":"https:\/\/www.dev.articusfinance.com\/uncategorized-sg\/two-years-on-from-brexit-is-the-uk-still-a-good-investment-for-international-buyers"},"modified":"2023-08-18T10:58:13","modified_gmt":"2023-08-18T02:58:13","slug":"two-years-on-from-brexit-is-the-uk-still-a-good-investment-for-international-buyers","status":"publish","type":"post","link":"https:\/\/backup.articusfinance.com\/sg\/blog\/two-years-on-from-brexit-is-the-uk-still-a-good-investment-for-international-buyers","title":{"rendered":"Two years on from Brexit: Is the UK still a good investment for international buyers?"},"content":{"rendered":"

The UK\u2019s property market has long appealed to international investors<\/span><\/a> for numerous reasons. From its high quality of life to its excellent universities, its position as a global centre of finance \u2013 and of course, its reputation for political stability.\u00a0<\/span><\/p>\n

<\/p>\n

Unsurprisingly, the Brexit vote (and the tumultuous period that followed) cast a shadow over this image. After so many years, was this finally the end of London\u2019s golden reputation in the eyes of foreign buyers?\u00a0<\/span><\/p>\n

Two years on from the UK\u2019s formal departure from the EU, we take a look at how Brexit has actually<\/em> impacted the market, and what this means for our international clients, including whether they can still get a mortgage after Brexit.\u00a0<\/span><\/p>\n

Has Brexit damaged the stability of the UK\u2019s property market?\u00a0<\/strong><\/span><\/p>\n

International investors have always been drawn to the UK\u2019s property market because of its long-standing reputation for security, stability and reliable price growth. Many were understandably concerned that Brexit would change this, or that they wouldn\u2019t be able to get a mortgage after Brexit, particularly in the Prime Central London (PCL) region, where international buyers make up a far higher proportion of the market. Others were worried about what Brexit would mean for commercial property values, particularly as some businesses made plans to leave the UK.\u00a0<\/span><\/p>\n

The good news? While we certainly saw price sluggishness following the actual Brexit vote, the UK\u2019s actual departure in 2020 hasn\u2019t resulted in any noticeable price crashes. Likewise, while some businesses have left or moved their headquarters elsewhere, a great many haven\u2019t<\/em>. The situation is still in flux: there\u2019s no agreement yet on financial services. But those in the world of policy and diplomacy are working hard to ensure Britain can continue as a centre of global finance excellence.\u00a0<\/span><\/p>\n

The real challenge: Covid-19\u00a0<\/strong><\/span><\/p>\n

The biggest challenge to the market was the one nobody could have predicted: Covid-19. During the first 18 months of the pandemic, travel restrictions and lockdowns made it all but impossible for prospective international buyers to visit and view properties.\u00a0<\/span><\/p>\n

Overseas buyers have always made up a large proportion of London\u2019s market. As one recent news story<\/a><\/span> put it: \u201cPre-pandemic, overseas buyers were responsible for around half of all property sales in neighbourhoods like Knightsbridge and Mayfair.\u2019 That figure dropped significantly throughout 2020 and 2021.<\/span><\/p>\n

But in the experience of many HNW agents (and indeed, the Articus team), international buyers are flooding back to the market. London remains as hot a ticket as ever, regardless of Brexit or the pandemic. In fact, the entire period has highlighted just how robust London\u2019s market really is.\u00a0<\/span><\/p>\n

The last few years have shown that a \u2018slow period\u2019 in the PCL market doesn\u2019t mean a crash, it simply means a lack of activity. In other words, \u2018Prices have not plunged \u2013 according to most house price indexes they have simply remained reasonably flat \u2013 although the number of sales has collapsed.\u2019 The reason for this is that, in slower periods, investors simply hold on to their London assets \u2013 because they absolutely trust that growth will resume, and know there\u2019s no need to risk making a loss by selling at an inopportune moment.\u00a0<\/span><\/p>\n

The signs are therefore good for any international buyer looking to purchase in London, and it\u2019s believed the capital will lead the UK housing market in the post-pandemic recovery. Even in spite of Brexit or Covid-19, another report<\/a><\/span> has recently revealed that Londoners can expect \u2018to see their house prices<\/a> rise by a fifth (21 per cent) over the next five years\u2019.<\/span><\/p>\n

UK mortgages for global investors after Brexit\u00a0<\/strong><\/span><\/p>\n

Of course, buying a property isn\u2019t the whole story: in the vast majority of cases, you also need to finance it, which was another Brexit concern. It has undeniably become more difficult for EU citizens not living in the UK<\/span><\/a> to arrange finance here, with additional complexities to consider. However, as always, there are always solutions to be found.\u00a0<\/span><\/p>\n

Elsewhere, nothing has changed for prospective investors from every other location around the globe. Since Brexit, Articus has continued to serve clients from every corner of the globe, whether that\u2019s Chinese nationals buying a flat for their children while studying, American landlords refinancing portfolios in London<\/span><\/a>, or Middle Eastern buyers <\/span><\/a>seeking a bolthole in the city. We continue to serve a truly global client base and pride ourselves on finding solutions no matter the changing political climate.\u00a0<\/span><\/p>\n

Two years on from Brexit, Britain remains an international hotspot\u00a0<\/strong><\/span><\/p>\n

Rightly or wrongly, part of Brexit\u2019s appeal for many was the opportunity for Britain to forge greater links with the rest of the world. The long-winded process of diplomacy and forging trade agreements means it will be many years before we see how this plan shakes out \u2013 but in terms of the property and mortgage market, our experience is certainly that investors from around the world continue to have an exceptionally high appetite for British property.<\/span><\/p>\n

So long as they do, we will continue to serve them \u2013 finding exceptional mortgage deals across residential<\/span><\/a>, buy to let <\/span><\/a>and commercial property<\/span><\/a>.<\/span><\/p>\n

Want more resources? Download our guide for <\/span>advice on securing a mortgage as a foreign national or expat<\/a>.<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The UK\u2019s property market has long appealed to international investors for numerous reasons. From its high quality of life to its excellent universities, its position as a global centre of finance \u2013 and of course, its reputation for political stability.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":13886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[64],"tags":[],"class_list":["post-13885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"jetpack_featured_media_url":"https:\/\/backup.articusfinance.com\/wp-content\/uploads\/2023\/01\/is the uk still a good bet for international investors.jpg","_links":{"self":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/posts\/13885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/comments?post=13885"}],"version-history":[{"count":0,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/posts\/13885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/media\/13886"}],"wp:attachment":[{"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/media?parent=13885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/categories?post=13885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/sg\/wp-json\/wp\/v2\/tags?post=13885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}