If 2020 taught us anything, it\u2019s that unexpected events can occur at any time. And as the start of 2021 (plus a new national lockdown) has shown, things are still liable to change rapidly. With that in mind \u2013 rather than predicting \u2013 we\u2019re reflecting, identifying some potential trends, and examining the landscape for the UK\u2019s high value property market. And the Articus Finance team is also hard at work considering how we can continue to support our clients as they navigate an increasingly complex investment landscape.<\/p>\n
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Analysing the impact of Covid-19 on the UK housing market has proved a difficult business; the ongoing stamp duty holiday is potentially skewing the market somewhat. But we certainly haven\u2019t seen the crash many feared.<\/p>\n
Throughout 2020, the Land Registry reported that<\/a> \u2018the price of a property in the UK increased by 1.7% month-on-month and 4.7% year-on-year in September\u2019. Meanwhile, Rightmove found that average asking prices had risen 6.3% year on year.<\/p>\n In our direct experience, the market has been surprisingly buoyant. Naturally, the stamp duty holiday has encouraged a great deal of activity \u2013 especially for first time buyers, for whom the saving makes a significant difference. The government has also shown a clear commitment to keeping things moving: despite the strict new lockdown, house viewings and visits relating to house sales are still permitted under law.<\/p>\n The world of high-value property \u2013 and particularly the London market \u2013 has experienced some challenges in the last few years. From tax changes to Brexit uncertainty, many buyers have been hesitant and price growth has been stymied. But despite the huge disruption over the last year of the last year, things have heated up considerably.<\/p>\n A recent report<\/a> found that, in the six months leading up to November, \u2018there was a 78.9% surge in the number of properties changing hands for between \u00a35 million (US$6.7 million) and \u00a310 million, compared to the same period last year.\u2019 Much of the activity has been driven by changing priorities motivated by the pandemic. With so many working from home, \u2018Big properties with gardens, home offices and access to outdoor space have since become a must-have for many.\u2019<\/p>\n This has certainly been the experience of the Articus team \u2013 over the last year, we\u2019ve helped a number of clients purchase their dream homes in the UK.<\/p>\n In the long term, it\u2019s hard to say if this heightened activity will continue once the full effects of the recession are felt \u2013 but ultimately, UK property has proven itself time and time again to be a stable asset class. Those looking for short-term capital growth may be out of luck, but those willing to make longer term investments should still be confident about UK property.<\/p>\n We recently helped an Indian national living in Singapore purchase a \u00a36 million residential property in the UK<\/a>. This individual was a global high net worth individual with multiple income streams, making it incredibly difficult to source finance \u2013 but we were able to arrange a five-year fixed interest-only mortgage with a top private bank.<\/p>\n In the summer, we helped a self-employed UK national purchase a home<\/a> in London. This client left significant profit within his businesses, and was also seeking to buy with a low deposit. We sourced an interest-only mortgage with a lender that has a high appetite for self-employed clients.<\/p>\n Information about property prices and trends is easy enough to source, but it\u2019s often more difficult to understand broader trends in the mortgage market \u2013 particularly at the higher end. One recent report with figures from the Bank of England indicated that<\/a> mortgage approvals are at a 13-year high. Meanwhile, the finance that Articus arranged throughout 2020 provides an interesting insight into the high net worth sphere.<\/p>\n Over the course of the year \u2013 despite the pandemic \u2013 we saw buyers and existing owners from across the full spectrum seek out new mortgages, and there was huge appetite at every level. This ranged from first time buyers to global ultra high net worth individuals refinancing property valued in the tens of millions.<\/p>\n Our average loan value for the year stood at \u00a31.325 million \u2013 while the average purchase value was \u00a32.2 million. And although there was a dip in activity in the early days of the pandemic, we saw a significant number of very high value cases from the late spring onward.<\/p>\n And even in the first weeks of 2021 \u2013 despite a new lockdown \u2013 our team continue to be busy, suggesting that HNW investors aren\u2019t slowing down any time soon.<\/p>\n In spring, we secured a private bank mortgage for a hedge fund worker using bonus income<\/a>. This enabled him to purchase a stunning \u00a33.5 million property in South West London.<\/p>\n Our team sourced a UK mortgage for a US resident<\/a> ahead of his return to the country. We arranged an interest-only loan for our client \u2013 who was earning in US dollars \u2013 enabling him to purchase a \u00a31.2 million property.<\/p>\n In terms of client profile, our activity in 2020 shows that \u2013 despite ongoing Brexit uncertainty, a pandemic, and the threat of serious recession \u2013 global investors from around the world continue to have confidence in the UK property market. Over the last year, we\u2019ve sourced mortgages for clients who reside in 67 countries around the world across almost every continent.<\/p>\n Take a look at our Expat and Foreign National Guide which explores the solutions available for overseas investors: https:\/\/www.articusfinance.co.uk\/guides\/expat-foreign-national<\/a><\/p>\n Earlier this year, we arranged a private bank mortgage for a Canadian<\/a> hoping to buy a property valued at \u00a32.3 million in London. This client did not have the income required to support such a large loan \u2013 so, we arranged a mortgage with a guarantor with a private bank, with no AUM required.<\/p>\nThe prime property market<\/h2>\n
Who we’ve helped<\/h2>\n
Mortgage market trends in 2020 and beyond<\/h2>\n
Case Studies<\/h2>\n
International appetite for UK mortgages<\/h2>\n