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Are expat property investors impacting the UK real estate market
| Published: | 3 Jan at 6 PM |
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With London’s property prices continuing to escalate, real estate experts are calculating the effect of expat property investment on the boom.
Media coverage over the last year has focused on the soaring costs of purchasing a home in London’s fashionable districts, but prices across the capital are following suit. Even a basic, one bedroomed apartment in the least popular areas now costs in the range of £200,000.
Recent government-assisted schemes such as home ownership and the historically low interest rates on mortgage loans are taking much of the blame, However, the elephant in the room may be expat property investors looking for good returns on buy-to-let bargains.
Expats on well-paying overseas contracts are perfectly placed for property investment, as present-day bank interest rates on more conventional investments don’t even cover inflation. For those looking to return to the UK after their contract ends, it makes sense to buy in now and let rather than wait several years and pay far more for a home on their return.
Property prices in the UK are estimated to soar by 20 per cent between now and 2018, with the highest increases in the capital and the south-east. The British government has said it will be watching the market carefully in order not to repeat the mistakes of the past decade.
Media coverage over the last year has focused on the soaring costs of purchasing a home in London’s fashionable districts, but prices across the capital are following suit. Even a basic, one bedroomed apartment in the least popular areas now costs in the range of £200,000.
Recent government-assisted schemes such as home ownership and the historically low interest rates on mortgage loans are taking much of the blame, However, the elephant in the room may be expat property investors looking for good returns on buy-to-let bargains.
Expats on well-paying overseas contracts are perfectly placed for property investment, as present-day bank interest rates on more conventional investments don’t even cover inflation. For those looking to return to the UK after their contract ends, it makes sense to buy in now and let rather than wait several years and pay far more for a home on their return.
Property prices in the UK are estimated to soar by 20 per cent between now and 2018, with the highest increases in the capital and the south-east. The British government has said it will be watching the market carefully in order not to repeat the mistakes of the past decade.
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